by The ASX closed higher on Wednesday as tech and health stocks bounced back and traders speculated Westpac could launch a multi-billion dollar share buyback.
The S&P/ASX 200 added 0.9 per cent to close 67 points higher at 7326.9, repairing Tuesdays decline.
Seven Groups ongoing purchase of Boral shares on market saw the Kerry Stokes-controlled company lift its stake to 35 per cent, with the construction materials reaching a three-year high of $7.41, just one cent above its closing price.
The ASX 200 rose by 0.9 per cent on Wednesday. Credit:Tamara Voninski
CSL rose 1.4 per cent to $281.16 and ResMed gained 3.4 per cent to $33.36 as high-growth sectors of the market bounced back from Tuesdays selloff.
Afterpay climbed 4.6 per cent to $120.01 and junior buy now, pay later rival Zip rose 6.5 per cent to $7.72.
Meanwhile, Westpac snapped a five-day decline, rising 0.6 per cent to $25.60 after JP Morgan analyst Andrew Triggs speculated the bank could embark on an off-market buy bank thanks to its out-size franking balance.
Westpac has previously said it would defer any decision on potential capital management until after the release of APRAs new capital rules (expected November 2021). We forecast it will undertake a $5 billion off-market buyback in the second half of 2021-22, he wrote in a note to clients.
Commonwealth Bank also added 1.1 per cent to close at $99.71, NAB gained 0.8 per cent to $26.31 and ANZ gained 0.4 per cent to $28.14.
And Challenger closed 8.8 per cent higher at $5.95 after US private equity firm Apollo revealed it had purchased an 18 per cent stake, raising the possibility of a takeover.
Shaw and Partners senior client advisor, Craig Sydney, noted the energy sector performed badly after a volatile night for oil prices, and that US bond rates fell down to 1.3 per cent overnight.
That puts more interest back into real estate trusts, healthcare, and infrastructure, he said.
These sectors were seen as bond proxies and did well in a low-interest rate environment, he explained.
Woodside Petroleum fell 1.9 per cent, Oil Search fell 2.5 per cent, and Whitehaven Coal fell 3.8 per cent.
Oil prices fell more than 2 per cent overnight as a dispute between OPEC members Saudi Arabia and the UAE led to speculation the group might abandon production restrictions and flood the market with oil.
While there is still another four to five weeks before the Australia reporting season kicks off, Mr Sidney said there would be quarterly reports coming from resources companies in coming weeks, and the US second-quarter results have already started.
