Gold, banking stocks drive Australian shares up as Omicron worries ease

  • 12/23/2021
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Bega Cheese top drag on ASX200 Health stocks post fourth straight session of gains Tech stocks snap three-day winning streak Dec 23 (Reuters) - Gold and financial stocks helped Australian shares close higher on Thursday, as investor sentiment improved after two research studies showed Omicron was less lethal compared with the Delta coronavirus variant. The S&P/ASX 200 index (.AXJO) rose 0.3% to 7,387.6 points, closing in the green for a third consecutive day. The benchmark had gained 0.1% on Wednesday. While Australia reported more than 8,200 new cases, two separate studies in South Africa and London suggested the risk of hospitalisation from the Omicron variant was less severe compared with the Delta variant. read more The heavyweight financial index (.AXFJ) rose 0.6%, with the country"s "Big Four" banks ending up between 0.3% and 0.6%. Gold miners (.AXGD) rose 1.3% as the yellow metal was poised for a second straight weekly gain. Dacian Gold Ltd (DCN.AX) and Tietto Minerals Ltd (TIE.AX) jumped 8.6% and 7.2%, respectively.[GOl/] Miners (.AXMM), which comprise a third of the benchmark, ended 0.3% higher as metal prices strengthened on supply concerns. However, iron ore majors Rio Tinto Ltd (RIO.AX) and BHP Group (BHP.AX) shed 0.1% and 0.3%, respectively. Health stocks (.AXHJ), up 0.5%, advanced for a fourth straight session, with diagnostics firm Sonic Healthcare (SHL.AX) among top gainers. Henry Jennings, senior analyst at Marcustoday Financial Newsletter said that increased demand for COVID-19 tests would be good for pathology laboratories as people travel across states around the festival season. The tech sector (.AXIJ) was the only drag on the market as it ended 0.9% lower, snapping a three-day winning streak, with WiseTech Global (WTC.AX) falling the most. Dairy firm Bega Cheese (BGA.AX) tumbled 10.3% and was the top decliner on the benchmark after warning of profit hit from strong domestic competition. read more Across the Tasman Sea, New Zealand"s benchmark S&P/NZX 50 index (.NZ50) remained flat at 12,862.71 points.

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