The Australian sharemarket experienced a rollercoaster on Thursday, initially surging before paring gains following the release of surprisingly strong employment figures. The S&P/ASX 200 index closed up 0.7 per cent, at 8843.1. The positive jobs data fuelled speculation that the Reserve Bank of Australia (RBA) might raise interest rates sooner than anticipated.
Figures released showed the unemployment rate unexpectedly dropped from 4.3 per cent to 4.1 per cent in December, accompanied by a substantial increase of 65,200 jobs. This figure more than doubled the expected 30,000, prompting UBS to revise its forecast, now anticipating an RBA rate hike as early as February. Money markets are reflecting this sentiment, pricing in a significant probability of a rate increase at the next meeting.
Sector performance was mixed. Energy was the strongest, boosted by Brent crude oil prices. Woodside Energy saw a jump, while Santos shares rose significantly. Conversely, materials experienced a downturn, with Fortescue falling following analyst commentary on its December quarter performance. Gold miners Northern Star and Regis Resources also declined after releasing production updates.
Some individual stocks saw notable movement. DroneShield, a technology company specialising in drone security solutions, rose after Bell Potter lifted its price target on the stock. IperionX, a company focused on creating a sustainable titanium supply chain, firmed after receiving a prototype order from American Rheinmetall. Netwealth, an investment platform, slid despite reporting record inflows.
