Markets in Australia Rebound Due to Bargain Hunting

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Australia’s stock market finished the ultimate session of the year with a positive outlook on Friday, 30 December 2022, as bargain hunting resumed and boosted overall market sentiment.

After concluding the previous session on a slightly negative note due to global economic uncertainty, traders kept an eye out for any hope amidst the downturn to make profits from current pricing levels.

This hope came from Wall Street overnight, where key indices closed the day firmly in the green, signifying that investors are still willing to take risks despite the current global financial climate. This encouraged bargain hunters in Australia to come forth and take up positions at lower price points, resulting in an overall uptick in market performance.

U.S. data overnight indicated that the Federal Reserve’s policy tightening is beginning to impact employment levels around the country, suggesting that rate hikes may slow down soon. This news has relieved investors and markets in Australia, who had grown increasingly concerned about the effect of rate hikes on their financial prospects.

At the closing bell, the benchmark S&P/ASX200 index advanced 18.63 points, or 0.27%, to 7,038.69, capping off a week of steady gains and increasing optimism amongst investors. The broader All Ordinaries index also rose, adding 24.37 points, or 0.34%, to 7,221.69, indicating that bargain hunters were cashing in on opportunities presented by the recent downturn in the market.

“Several seismic shifts … will likely define the next decade of investing,” said Jody Jonsson.

Australia’s stock market had a turbulent year in 2022, with the benchmark S&P/ASX200 index closing 6 per cent lower on Friday, 30 December, compared to the start of the year. Information technology, real estate, and consumer discretionary were the weakest sectors in 2022.

Bargain hunters emerged at lower price points throughout the year. They took advantage of these opportunities as market sentiment improved towards the end of the trading period – capping off a problematic yet ultimately positive finish for investors who stayed resilient throughout one of Australia’s most challenging years on record for stock trading activity.

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