The Australian sharemarket closed higher on Tuesday buoyed by gains in lithium miners, as investors await the US Federal Reserve's policy meeting this week for clues on the path of interest rates.
The benchmark S&P/ASX 200 advanced 26.7 points, or 0.4 per cent, to 76664.1 on the last day of the month, but still ended down 3 per cent in April. The All Ordinaries added 0.3 per cent on Tuesday.
Out of the 11 sectors, eight flashed green, buoyed by the resources sector. Industrial companies were the biggest loser, falling 0.5 per cent.
Fed meeting looms
The big four banks advanced, led by Westpac up 0.8 per cent to $25.96, while the mining giants finished mixed. BHP rose 0.1 per cent to $43.03, Rio Tinto fell 0.4 per cent to $130.49, and Fortescue Metals rallied 1.5 per cent to $26.05.
Investors did, however, take a shine to lithium explorers, with Arcadium leaping 8.4 per cent to $6.72 and IGO powered up 7.3 per cent to $7.91. Lake Resources advanced nearly 7 per cent to 6.2.
Wednesday's Fed meeting (Thursday AEST ) looms large for investors, with markets pricing in just 35 basis points of interest rate cuts this year - down from about 150 basis points at the start of the year.
In contrast, bond markets still expect the Reserve Bank will raise the cash rate to 4.6 per cent this year though traders trimmed bets after retail sales surprisingly fell in March as higher borrowing costs hit household budgets.
Traders ascribe a 25 per cent chance the RBA will resume tightening by September, from 44 per cent before the data and imply zero chance of an interest rate cut this year.
The decline in retail sales knocked the Australian dollar 0.8 per cent lower to US65.14, setting it on course to end the month where it started.
Stocks on the move
In corporate news, engineering company Worley Limited was the largest laggard on the index, tumbling 7.5 per cent to $15.09 after its largest shareholder, Dubai-based infrastructure group Sidara sold a 19 per cent stake. It was Worley's biggest one-day drop in three years.
"The relationship with Dar has added questionable value to Worley over the last several years. This sell-down should come as a relief to Worley's board and management," said RBC Capital Markets analyst Gordon Ramsay.
RBC is optimistic about Worley as its growing market share in sustainability projects is expected to boost earnings and margins.
Fuel supplier Ampol shed 3.3 per cent to $36.81 after reporting a large drop in Lytton Refiner Margin in the three months to March.
Supermarket giant Coles slipped 0.3 per cent to $16.22 in choppy trading after its total group sales revenue hit $10.03 billion in the third quarter.
And engineering firm Tasmea fell 1.2 per cent to $1.68 on its second day of trading on the ASX.
Sumber : afr.com
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