ASX gains 0.7% after soaring IT stocks

Australian stocks climbed Thursday as investors followed optimism the United States would resolve its debt ceiling issues.

The S & P / ASX 200 ended the session 0.7% higher at 7256.7, with tech stocks leading the day with gains of 2.3%. U.S. futures rose slightly in Australia’s Thursday trading session as the U.S. Senate worked on a temporary solution to the country’s debt ceiling crisis, discussing plans to extend the borrowing limit of the country until December.

Stabilizing US bond yields also helped the tech-rich Nasdaq overnight and Australian tech stocks provided the biggest rebounds on Thursday. Afterpay posted gains of 3.1% to $ 120.63, Xero was ahead 2.8% to $ 137.41 and Wisetech Global ended the day up 2.9% to $ 52.28.

EY Oceania mergers and acquisitions manager Duncan Hogg said the local market was affected by economic unknowns in Australia and abroad.

“Downward pressures in the market include the US debt ceiling coupled with the reopening of New South Wales and the impact this could have – but on the upside there is a positive sentiment,” he said. he declared.

Further details of Australia’s COVID-19 reopening plan became clear on Thursday as New South Wales reached a milestone of 70% of its population over 16 being vaccinated against the virus. Prime Minister Dominic Perrottet also proposed a number of new freedoms for vaccinated citizens.

Local real estate stocks surged throughout the afternoon. Goodman Group rose 1.2 percent to $ 21.28, Charter Hall gained 2.1 percent to $ 16.75 and retail owner Vicinity Centers was ahead 0.6 percent to 1.70 $.

Despite this, travel stocks were mixed: Qantas ended the day down 0.7% to $ 5.58, Flight Center edged up 0.4% to $ 22.90, and Corporate Travel Management was down. 0.9% to $ 23.65.

Energy stocks were the only sector lagging behind, down 0.8% as oil prices eased Wednesday night, but the sector is still up 16.8% for the month.

Some of the biggest winners of the day made tasty updates for their investors: Fast food operator Collins Foods ended the session with a 6.9% lead to $ 12.81 after the company confirmed having signed a franchise agreement for KFC in the Netherlands.

Pharmacy operator Priceline’s API rose 1.7% to $ 1.52 after Wesfarmers confirmed it bought a 19.3% stake in the company. Wesfarmers and pharmaceutical wholesaler Sigma recently made offers for the API business.

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