The ASX was 0.26% higher at close, led by the Materials sector which rallied 1.29%. Of 11 sectors, 7 were higher. The Healthcare sector fell the furthest of the four, with a 0.82% drop.
What are the best and worst performing sectors this week?
From Dale Gillham of Wealth Within:
The best performing sectors include Utilities, Energy and Material, which are all up over 4% followed by Information Technology up over 3 per cent. The worst performing sectors include Industrials, Healthcare and Communication Services, as they are all down over 1% so far for the week.
The best performers in the S&P/ASX top 100 stocks include IGO up over 9% followed by Block and JB Hi-Fi up over 8%. The worst performing stocks include Fischer and Paykel down over 11% followed by ResMed and Magellan Financial Group, as they are both down over 8% while Atlas Arteria is down over 7%.
What's next for the Australian stock market?
The All Ordinaries Index has had a strong week again, rising above the high of 7,646 points achieved in mid-February. Given this, I am now confident that the market is in the early stages of a new uptrend and that the weakness over the past few months has abated, while the risk of investing in stocks has decreased.
What is important to remember is that during January and February the masses were fearful of a market correction with many exiting or staying away out of fear. The war in Ukraine, the potential for rising interest rates and increasing inflation were all pushed by commentators as the reason why the market was supposedly going to crash. But this highlights why market noise can lead to fear or greed and result in poor decision making. The rule is not to blindly follow what others are saying.
For those who have remained patient and cashed up, I believe the market will rise to move above 8,000 points over the next few weeks, which means smart investors will be rewarded as there are many high-quality, low risk trades presenting right now.
China confirms rumours of policing and law enforcement agreement with the Solomon Islands
In the latest concerning development for geopolitical stability, the Chinese government has confirmed it has signed a memorandum of understanding for “police co-operation” with the Solomon Islands.
The move has drawn the ire of the international community, with the Australian government expressing its alarm about the draft agreement and its fear that it could lead to a satellite Chinese military presence in the Pacific.
The agreement outlines that the Solomon Islands may "request China to send police, armed police, military personnel and other law enforcement and armed forces" to the country.
It also says that the Chinese government may "make ship visits, to carry out logistical replenishment in, and have stopover and transition in Solomon Islands".
While there was no direct mention of a broader security agreement, China has said it wishes to push for a strategic relationship of a ‘higher level’ with the Solomon Islands.
“The Chinese side is willing to work with the Solomon side to fully implement the important consensus reached by the leaders of the two countries, actively promote the pragmatic co-operation in police affairs and law enforcement between the two sides, and continuously push China-Solomon relations to a higher level,” A statement from the Chinese Foreign Ministry said.
A spokesperson for the Australia Foreign Affairs Department highlighted the risks of regional destabilisation and underlined the close ties the Solomon Islands have with Australia.
“The successful response by the Pacific family, at Solomon Islands request, to help restore calm after civil unrest in Honiara shows that members of the Pacific family are best placed to respond to situations affecting Pacific regional security,” The spokesperson said.
“The Pacific family is able to provide security assistance without the need for external support and stand ready to assist further if needed.
“Pacific Island nations have the right to make sovereign decisions. Australia’s co-operation with our Pacific Family is focused on the economic prosperity, security and development of our region. This co-operation is always transparent and open, and aligned to the priorities and interests of our Pacific partners.
“We would be concerned by any actions that destabilise the security of our region.”