The S&P/ASX 200 (ASX: XJO) is now down just 1.7% in 2022 after gaining 0.7% on Tuesday and comes despite a backdrop of war, inflation and rising interest rates.
The consumer-facing sectors were among the most popular ahead of the Federal Budget, with consumer discretionary and technology leading the way, gaining 2.1% and 3.3% respectively.
Block Inc (ASX: SQ2) gained another 6.8% with Xero Limited (ASX: XRO) also rebounding, buoyed by a budget that will reward small businesses for technology investments.
Materials and energy fall, Magellan jumps
The materials and energy sectors were the only detractors, down 0.5% and 0.2%, respectively, as the threat of demand destruction hits the oil and commodity prices.
Crown Resorts Ltd (ASX: CWN) shares remained muted, up 0.9%, as private equity group Blackstone received approval from the Foreign Investment Review Board (FIRB) for their takeover of the group; a number of approvals still remain.
Shares in Rio Tinto Limited (ASX: RIO) fell another 1.4% as Shanghai lockdowns worsened and the company confirmed it had finalised the $825 million purchase of Rincon, as it seeks to expand operations in the battery materials and lithium sectors.
Meanwhile, fund manager Magellan Financial Group Ltd (ASX: MFG) gained 7% as a number of key underlying holdings, including Alibaba (NYSE: BABA), continue to rally.
Telstra restructure confirmed
Telstra Corporation Ltd (ASX: TLS) shares reversed course, gaining 1.6%, after management finally confirmed it was making progress on a long-awaited structural separation, with Telstra Group to control four individual underlying entities as previously flagged. The transfer will be completed internally but open opportunities for more asset sales and corporate activity.
Nearmap share price soars
Shares in Nearmap Ltd (ASX: NEA) remain volatile, this time gaining 16% after management upgraded guidance. The company now expects annual contracted revenue (ACV) to exceed $150 million this year after gaining its largest government contract in the US.
Morrison ups Uniti bid
Shares in Uniti Group Ltd (ASX: UWL) fell 1.7% despite Morrison & Co upping their bid for the company to $5 per share. The sell-off was due to the granting of an exclusivity clause that all but removed the competitive bidder Macquarie from the process.
Elsewhere, Australian retail sales saw the second-highest monthly dollar spend on record, doubling forecasts of 0.9% growth in February and jumping 9.1% on this time last year.
ASX 200 today
Looking ahead, the ASX 200 is heading towards another positive open this morning after all three US stock markets pushed higher overnight. To find out more, check out my US stock market report.
