As the sun rises on a new trading day, the local share market is experiencing a spirited rebound, enticing traders eager to seize opportunities after five consecutive days of decline.
By midday AEDT on Tuesday, the benchmark S&P/ASX200 index surged by 71.4 points, or 0.87 percent, reaching 8,320.2. Meanwhile, the broader All Ordinaries climbed 70.5 points, or 0.83 percent, to hit 8,564.5.
“Welcome to the official start of the Santa Claus rally for 2024, arriving right on schedule in mid-December,” declared market analyst Tony Sycamore. Having accurately forecasted the ASX200’s dip to around 8,200 last week, Sycamore has now shifted to a bullish outlook, anticipating further gains as the year draws to a close. This aligns perfectly with the traditional December pattern, known for its seasonal strength in equities, typically marred only by a brief weakness early in the month before a festive surge.
Despite the midday rally, the ASX200 remains down 1.4 percent for the month, reflecting a two percent drop during its recent losing streak. Yet, optimism fills the air as every sector, apart from energy and utilities, showcases positive movement. The telecommunications sector led the charge, climbing 1.4 percent, buoyed by a 3.1 percent rise in shares of REA Group, the owner of realestate.com.au.
In contrast, the energy sector faced challenges, with Karoon Energy plummeting 7.0 percent to $1.2975 following a guidance downgrade linked to Hurricane Rafael’s impact in the Gulf of Mexico and complications at its floating oil platform off Brazil.
On a brighter note, Digico, a data centre operator, is on track for a promising debut after its initial listing on Friday, with shares rising 5.1 percent to $4.52, though still trailing its IPO price of $5.
Adding to the day’s excitement, SPC Global Holdings made its return to the bourse after nearly two decades, following its acquisition by Coca-Cola Amatil in 2005. The company, which now encompasses SPC, the Original Juice Company, and Nature One Dairy, saw its shares trading at $1.40, down 6.6 percent from the initial offering price of $1.50, which successfully raised $2.4 million for the firm.
As the trading day unfolds, the market’s resilience shines through, offering a glimmer of hope for investors looking to finish the year on a high note.
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