Gains in tech stocks helped Australia’s main index end the week on a positive note, although worries about a recession weighed on heavyweight energy and mining sectors.
The S&P/ASX 200 index closed 0.77% higher at 6,578.7 on Friday and was up 1.61% for the week, its biggest weekly gain in more than three months.
Stock markets around the world have been skewed in recent sessions as investors wonder if equity valuations have bottomed following a strong sell-off driven by fears of an economic slowdown.
“I think the market is well and truly oversold at this point and selling is now nearing exhaustion,” said Brad Smoling, managing director of Smoling Stockbroking.
“I suspect bargain hunters may be starting to nibble. It’s hard to say if that’s the bottom. Tech stocks rose 6%, mirroring gains from their Wall Street counterparts, which were supported by a decline in benchmark U.S. Treasury yields.
Shares of Buy Now, Pay Later Zip Co soared 21.6% and were among the top gainers on the ASX 200, while those of ASX-listed rival Block Inc climbed a close margin by 11%.
Australian stocks end higher as banks and tech gain
Gold stocks rose 0.23% even as bullion prices headed for their second consecutive week of declines. Resolute Mining rose 6.7% and was among the top gainers in the sub-index, while Northern Star Resources edged up 0.6%.
Energy and mining shares, however, fell 1.45% and 0.2% respectively Qantas Airways fell 1.6% after the carrier announced it would cut domestic capacity until March 2023, citing rising fuel prices and personnel problems at airports.
The New Zealand Stock Exchange was closed on Friday due to a public holiday.