The Australian sharemarket experienced its most significant single-day gain since April, as investors returned to technology and mining stocks following a substantial sell-off the previous week. The S&P/ASX 200 Index jumped 166.4 points, a 1.9 per cent increase, reaching 8875.2 by mid-afternoon AEDT, with all sectors showing positive movement. This surge follows a sharp 2 per cent decline on Friday, which had erased approximately $65 billion from the market.
CAR Group saw its shares climb 7.4 per cent after aligning with market expectations by reporting an adjusted profit of $196 million. Reporting season has commenced, increasing market activity and investor focus on company results. Meanwhile, Pepper Money’s shares spiked 26.1 per cent following confirmation of a $2.60 per share takeover offer from Challenger, while shares in Challenger fell 3 per cent. Pepper Money is a non-bank lender, offering various mortgage, auto, and equipment finance products. Challenger is a financial services firm that manages investments, providing retirement income products.
Technology stocks demonstrated a strong recovery, with WiseTech Global increasing by 2.4 per cent, NextDC by 5.2 per cent, and TechnologyOne by 3.9 per cent. Miners also benefited from a rebound in commodity prices. Newmont shares soared 6.7 per cent, Northern Star gained 3.1 per cent, South32 rose 4.1 per cent, and BHP increased by 2.1 per cent, supported by rises in gold and silver prices.
Market strategist Michael McCarthy noted that Australian shares are expected to remain volatile during the ongoing reporting season. He highlighted that recent volatility in gold, silver, cryptocurrencies, and technology stocks has kept investors on edge, suggesting that company results will likely drive significant single-stock reactions.
