It was another strong day for the S&P/ASX 200 (ASX: XJO), overcoming negative sentiment around valuations and inflation to deliver another 1.2% gain.
Almost every sector finished higher, with utilities the primary underperformer after Origin Energy Ltd (ASX: ORG) dropped 2.6%.
The standout was energy once again, gaining 2.8% and materials, which finished 2.0% higher as investors flocked to both construction material providers, Boral Limited (ASX: BLD) and AdBri Ltd (ASX: ABC), sending their shares up 3.9% and 4.2%, respectively.
ERA’s big clean up
On the negative side was news that Energy Resources Australia, part of Rio Tinto Limited (ASX: RIO), had seen a further blowout in its rehabilitation of the Ranger uranium mine to as much as $2.2 billion, which may well be an insight into the future of ‘stranded assets’.
Telstra reveals two major infrastructure projects
Telstra Corporation Ltd (ASX: TLS) has continued its long-awaited evolution, agreeing to invest around $1.5 billion in two major telecommunications projects in the next five years.
One is a ground infrastructure play with Viasat, which will support a satellite rollout, the other a new inter-city fibre network; both have been marked as ‘nation building’ opportunities.
Amcor passes on costs
Packaging company Amcor CDI (ASX: AMC) garnered headlines after announcing it had been able to pass on price increases totalling $650 million to customers during the quarter.
These represented higher input costs faced by the company but hid what appears to be slowing sales growth elsewhere.
According to the quarterly report, organic sales growth without inflation grew by just 2%, with net profit adding a similar amount. Despite the slowdown, the group has increased its share buyback program.
RBA provides more guidance on rates
RBA Governor Philip Lowe spoke to journalists and economists on Wednesday, offering wide-ranging insights into various parts of the economy.
He flagged the potential for rates to increase in 2022, but reiterated that this decision would be solely focused on wage growth, not on short term inflation rates. It is more likely that the conditions required for a hike will occur in 2023.
ASX 200 today
Looking ahead, the ASX 200 is set to open relatively flat this morning.
This comes despite a positive lead from US markets, with all three US benchmarks pushing higher overnight.
PayPal (NASDAQ: PYPL) shares plummeted more than 20% on a weak quarterly report, while Alphabet (NASDAQ: GOOGL) shares surged as Search continues to dominate. To find out more, check out my US stock market report.