ASX 200 Gains for Third Day as Property Stocks Rebound Despite Consumer Confidence Drop
The Australian stock market extended its winning streak on Tuesday, with the S&P/ASX 200 index rising for a third consecutive session. The benchmark gained 49.3 points, or 0.57%, to close at 8,735.7, recovering much of last Thursday's sharp decline. Property stocks led the rebound, climbing 1.11% after three straight losing sessions that had pushed the sector to its lowest level since January 2024. Among the top performers were Arena REIT, Growthpoint Properties Australia, and Stockland, each rising between 3% and 4%.
Miners and resource stocks also contributed to the rally, with Alcoa surging over 4% as aluminium prices rebounded. BHP and Rio Tinto each gained around 1%, while South32 rose 1.6%. Lithium stocks, including PLS Group and Liontown, recovered after a difficult stretch. However, defense and tech stocks retreated, with Codan dropping nearly 4% and WiseTech Global slipping about 2%.
The market's gains came despite a significant decline in consumer confidence, as the Westpac-Melbourne Institute Consumer Sentiment Index fell 4.7% to 80.4 in October. The survey, which straddled the Reserve Bank of Australia's latest interest rate hike, showed a dramatic drop in sentiment after the decision, with responses collected post-hike plummeting to 67.2. Households are also grappling with rising fuel prices and expectations of further mortgage rate increases.
Analysts noted that the rally had the feel of a relief bounce, with rising global bond yields still posing a risk to stocks. Investors will be watching for further economic data and corporate updates as the market looks to recover from last week's losses. Additionally, EQ Resources reported record quarterly revenue, while Dicker Data entered a trading halt ahead of a potential acquisition announcement.