AXJO logs third weekly gain
IT stocks rise for 8th straight week
Energy stocks rose 8% in May
May 30 (Reuters) – Australian shares edged up on Friday, as worried investors flocked to defensive stocks after a U.S. appeals court kept President Donald Trump’s tariffs in effect.
The S&P/ASX 200 index rose 0.3% to end at 8434.7, gaining 0.6% for the week. The benchmark ended slightly higher on Thursday.
The benchmark rose 3.5% in its second consecutive monthly gain, as it navigated through a tumultuous period of corporate earnings, U.S.-China trade tensions, and the Reserve Bank of Australia lowering rates to a two-year low.
The late Thursday ruling by a federal appeals court temporarily reinstating the broadest of Trump’s tariffs after a trade court halted them a day earlier, and injected fresh uncertainty into the market.
“Australian stocks seesawed as messy tariff crossfire clashed with mounting end-of-month anxiety…with caution fermenting ahead of another uncertain month,” said Hebe Chen, a market analyst at Vantage Markets.
Investors took refuge in defensive sectors such as banks and healthcare, which rose “as risk appetite slipped into the back seat,” added Hebe.
Financials logged their third consecutive week of gains with a 0.7% rise. The “Big Four” banks rose between 0.4% and 2.7%.
The sub-index gained 4% in May, its second successive month of gains.
Health stocks rose 0.2%, finishing the week 0.7% higher, its third straight weekly gain.
However, gains in banks and health stocks were tempered by losses in energy and IT stocks.
Energy stocks fell 1.4% on lower oil prices but posted a 8% monthly rise – its highest in nearly two years.
IT stocks shed 0.6% for the day as investors booked profits, with tech giant WiseTech losing 1%. The sector gained 3.9% for the week, an eighth straight weekly gain.
Miners rebounded late in trading, adding 0.4% despite a dip in iron ore prices.
Meanwhile, New Zealand’s benchmark S&P/NZX 50 index ended 1.1% higher at 12418.89. (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Rashmi Aich)
