The ASX continues to march higher after the government’s budget delivered a ‘sugar hit’ to some pockets of the market and as traders position themselves for the end of the month and quarter.
The benchmark S&P/ASX 200 closed 0.7 per cent higher,up 50.2 points to 7514.5. The index remains on track to finish the month at least 6 per cent higher,and in the past two days has entered positive territory for the quarter.
Blue chip stocks supported the ASX on Wednesday with healthcare giant CSL up 1.7 per cent,Macquarie Group up 2.1` per cent,and the big banks higher. Retailing conglomerate Wesfarmers gained 1 per cent,while Domino’s Pizza,which is down 25.7 per cent this quarter,gained 5.8 per cent to $87.69.
Chief investment officer at Australian Eagle Asset Management,Sean Sequeira,noted some concerns about the sugar hit from the Budget.
“Our concerns revolved around the impact of inflation and whether this Budget may exacerbate such concerns,” he said.
“When you increase government spending,and place it into the hands that will spend it,that can be inflationary.”
Retails enjoyed gains across the spectrum,with JB Hi-Fi closing at an all-time high of $55.85. On the All Ords,Adairs,Kogan.com,Michael Hill Jeweller,and Universal Stores all made strong gains.
The announcement of an extra deduction for information technology services helped push information technology up 3.8 per cent and add 10.2 points,although Mr Sequiera noted a strong lead from Wall Street,where the Nasdaq outperformed.
Data centre Megaport gained 7 per cent and Next DC gained 3.6 per cent. Block Inc jumped 6.1 per cent and Xero gained 5.3 per cent.
Tech tracking group Life360 closed 9.6 per cent higher after a positive outlook in its annual report.
Telstra fell 0.8 per cent to $3.90 after chief executive Andy Penn announced his resignation and the company unveiled its first female chief executive,Vicki Brady.
Mixed mining company South32 dropped 3.5 per cent,fertiliser maker Incitec Pivot fell 5.5 per cent,and Whitehaven Coal dropped 3.5 per cent. BHP closed 0.1 per cent lower,while Rio Tino gained 0.1 per cent.