Australia Market rallies 1.9% on bargain hunting

Australian share market finished session higher on Monday, 27 June 2022, on tracking a surge on Wall Street late last week as fears over aggressive rate hikes by the U.S. Federal Reserve eased somewhat after U.S. data showed a slight fall in the country's inflation outlook.

Total 10 of 11 ASX sectors closed higher, with information technology, consumer staples, financials, and telecom issues enjoyed largest%age gains.

At closing bell, the benchmark S&P/ASX200 advanced 127.25 points, or 1.93%, to 6,705.95. The broader All Ordinaries index added 131.20 points, or 1.94%, to 6,893.58.

The top performing stocks in S&P/ASX200 index were IMUGENE and POINTSBET HOLDINGS, up 45.45% and 12.45% respectively. The worst performing stocks in the index were EVOLUTION MINING and NORTHER STAR, up 21.9% and 12.451 respectively.

Stocks tracked a surge on Wall Street from the outset after the University of Michigan Surveys of Consumers released Friday showed that U.S. consumers forecast inflation to rise at an annualized rate of 5.3% as of the end of June, revised downward from the preliminary reading of 5.4%. The slight downward revision raised cautious hopes that the Fed may not push as hard for aggressive rate hikes, which lead to higher borrowing costs for firms and households.

Shares of materials and resources gained as iron ore prices rose on expectation of a recovery in demand after Chinese President Xi Jinping pledged to take more effective measures to achieve the country's economic and social development goals. BHP Group, Rio Tinto and Fortescue added between 2.4% and 3.5%.

Technology stocks tracked Wall Street higher. Block climbed 5.5%, while software firm Xero added 1.2%.

Financials advanced, with the "big four" banks climbing between 2.3% and 4%.

Gold stocks nosedived, as heavyweight Evolution Mining tumbled almost 22% after cutting its production outlook. The company now expects 2022 gold production to be around 640,000 ounces, well below its previous guidance of 700-760 thousand ounces. Gold miner Northern Star tumbled 12.1%.

CURRENCY NEWS: The Australian dollar was down, at 69.24 US cents.

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