Australia S&P/ASX200 gains 0.8% on GDP data

March 03,2021

The Australian market closed session higher on Wednesday, 03 March 2021, as market participants started purchases on dips and buybacks following the market's downturn the day before. Meanwhile, bargain buying also propelled by better than expected GDP data for the fourth quarter of 2020 (October to December).

At closing bell, the benchmark S&P/ASX200 advanced 55.71 points, or 0.82%, to 6,817.98. The broader All Ordinaries added 57.97 points, or 0.83%, to 7,067.86.

Most sectors on the market improved, materials easily contributing most to broader advances, followed by financials, energy, consumer discretionary and industrials.

Gold miners were some of the biggest winners for the day. Ramelius Resources (RMS) ended 13.7% higher while larger gold miner, Northern Star (NST) gained 4.2%. Major miners Fortescue Metals (FMG) and BHP Group (BHP) roughly added 27 points alone. FMG rose 5.7%, having dropped 10.3% over the first two days of the week (it traded ex-dividend on Monday). BHP was 3.5% higher.

Meanwhile, technology, consumer staples and healthcare led declines with communications also in the red. In the tech space, buy-now pay-later names were among laggards with Afterpay (APT) down 2.2% while accounting software firm, Xero (XRO) was 2.7% softer. Biotech firm, CSL Ltd (CSL) underperformed in the health sector with a 1% loss.

In economic news: Australia GDP Adds 3.1% On Quarter In Q4- Australia's gross domestic product gained a seasonally adjusted 3.1 percent on quarter in the fourth quarter of 2020, the Australian Bureau of Statistics said on Wednesday, following the upwardly revised 3.4 percent gain in the previous three months (originally 3.3 percent). On a yearly basis, GDP was down 1.1 percent after sinking 3.8 percent in the three months prior.

CURRENCY NEWS: The Australian dollar changed hands at $0.7824, following levels around $0.774 seen yesterday.

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