Market Wrap: ASX lifts on bargain hunting

Credit: Wonderlane

In what was yet another volatile day of trading, local shares ended the session on top as investors accepted China’s lower growth rate. Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) up 0.9% to 4903 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) up 0.9% to 4955 points
  • AUD/USD at US 68.76 cents
  • Iron Ore at US$42.66 a tonne, according to the Metal Bulletin
  • Gold at US$1,088.49 an ounce
  • Brent oil at US$28.96 a barrel

Investors had been fearfully awaiting the release of China’s official growth numbers, but appeared to accept the 6.9% annual growth reported by the country’s government. It was only the ASX’s second day of gains so far in 2016.

All four of Australia’s major banks led the charge, with Westpac Banking Corp (ASX: WBC) producing the biggest gain of 1.3%. BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) were also higher at the end of the day, boosted by a rise in the iron ore price overnight, while most gold miners also finished higher.

Neither Wesfarmers Ltd (ASX: WES) nor Woolworths Limited (ASX: WOW) were able to hold onto yesterday’s gains however, falling 1.1% and 1.3% respectively.

Metcash Limited (ASX: MTS) shares also fell 1.5%. Sundance Energy Australia Ltd (ASX: SEA) was the market’s top-performing share, rising 10.5%. AWE Limited (ASX: AWE) wasn’t so lucky, its shares falling 6.6%. Here are Tuesday’s top stories:

  1. China growing at slowest rate in 25 years as resources shares crash
  2. Rio Tinto Limited posts record iron ore production: Is it time to buy?
  3. Is the RBA going to cut interest rates in 2016?
  4. Without Masters is Woolworths Limited a SELL?
  5. The Top 10 biggest falling share prices in 2016
  6. Shine Corporate Ltd shares set to plunge on shock downgrade
  7. What will happen to BHP Billiton’s “once in a lifetime” 16.5% dividend yield?
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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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