Tech and energy stocks lead gains on ASX

Tech stocks rebounded, but the rest of the Australian market didn’t quite match the US lead.

Tech stocks rose more than 2% on Wednesday to AEDT 1,200 after the US tech giants rebounded on Wall Street.

Afterpay improved by more than four percent, while financial software provider Xero gained more than three percent.

Energy stocks did well a day after OPEC abided by an existing pact for a gradual increase in oil production.

Merger partners Oil Search and Santos each gained more than 2%.

The benchmark S & P / ASX200 was up 12.2 points, or 0.16%, to 7,260.6.

The All Ordinaries rose 19.5 points, or 0.25%, to 7,556.

Wall Street ended sharply higher after investors bought the tech giants a day after widely selling them off.

Yields on the US Treasury rose amid concerns about a possible default on US government debt.

The Senate will soon vote a measure to suspend the US debt ceiling.

The partisan debate risks an economically crippling federal credit default.

In ASX Company News, A2 Milk shareholders filed a class action lawsuit against the company, alleging deceptive behavior resulted in heavy losses.

A shareholder lawyer said A2’s annual profit forecast for fiscal 2021 did not warn of the factors that led to four downward revisions.

The company had to revise its operations in China and set aside more than $ 92.9 million for old inventory.

The shares were down nearly four percent to $ 6.26.

Aussie Broadband raised $ 20 million through a stock sale.

In September, the company raised $ 114 million through a sale of shares to professional investors.

Plan provider NBN will use the funds to develop new technologies and for mergers.

Shares rose 1.42% to $ 4.98.

The heavyweight banks were all weaker. The Commonwealth Bank did worse and fell 2.3 percent to $ 103.07. Its big four peers each lost less than half a percent.

The minors were mostly higher. BlueScope Steel rose nearly three percent to $ 20.31. BHP and Fortescue gained less than one percent each. Rio Tinto slipped 0.39% to $ 96.75.

The chief executive of New Zealand energy supplier Meridian said he was still considering selling the Australian company.

Neal Barclay told an annual general meeting that government intervention in Australia’s energy market was causing uncertainty for businesses.

The shares rose 1.06 percent to $ 4.73.

The Australian dollar was buying 72.84 US cents at 1,200 AEDT, up from 72.65 US cents at Tuesday’s close.

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