SYDNEY: The Australian stocks erased yesterday’s losses as a resurgent energy sector and strong financial stocks lifted the bourse following the release of Reserve Bank meeting minutes.
At the 4.15pm (AEDT) official market close, the benchmark S & P/ASX200 index rose 44.4 points, or 0.77 per cent, to 5,842.1, while the broader All Ordinaries index added 41.3 points, or 0.72 per cent, to 5,811.
The March board meeting minutes released by the RBA today suggested the central bank was likely to wait for April’s inflation and employment data before moving rates lower.
IG market
strategist Stan Shamu said the ASX200 reversed yesterday’s losses, with the recovery boosted by the dovish meeting minutes.
“The gains we’ve seen this year have been mainly fuelled by easing expectations and any indications of imminent easing will likely drive the local market higher,” Mr Shamu said.
“The minutes reinforced a dovish view, with the RBA acknowledging that current forecasts for growth and inflation certainly suggest further easing will be required.”
He said the demand for high-yielding stocks would continue to drive gains, particularly in the banking space.
