Market (ASX:XAO) rallies, but finishes week lower, energy, utilities in focus as Origin jumps

The Australian share market finished the week on a positive note, gaining 0.1 per cent, once again on the back of a rally in the energy and utilities sectors, which gained 1.3 and 1.6 per cent. The standout was Origin Energy (ASX:ORG) which added 2.8 per cent as the market continues to digest the likelihood […]

The Australian share market finished the week on a positive note, gaining 0.1 per cent, once again on the back of a rally in the energy and utilities sectors, which gained 1.3 and 1.6 per cent. The standout was Origin Energy (ASX:ORG) which added 2.8 per cent as the market continues to digest the likelihood of the most complicated acquisition in recent years. It was a similar story for the energy sector, with Woodside (ASX:WDS) adding 1.4 per cent, as the oil price gained following reports that several OPEC+ members were seeking further output cuts at the next meeting. Almond producer Select Harvest (ASX:SHV) fell by more than 10 per cent after the company reported a 30 per cent reduction in production for the year, blaming poor weather conditions, which sent the company to a $115 million loss as the value of the group’s assets were written down. Virgin Money (ASX:VUK) also fell 6 per cent after the UK bank reported a 42 per cent fall in profit, on the back of a jump in provisions for potential bad debts. Across the week, the energy sector outperformed, gaining 2.1 per cent, while tech fell 3 per cent, with the S&P/ASX200 falling 0.1 per cent over the five days.

US markets cap another strong week, NVIDIA weakens, Black Friday results ahead

US markets capped a Thanksgiving-shortened session with another gain, as the Dow Jones added 0.3, and the S&P500, 0.1 per cent. The Nasdaq weakened 0.1 per cent on the back of a near 2 per cent fall in AI chip giant NVIDIA (NYSE:NVDA), despite the company delivering a forecast beating result for the quarter. Another strong week, which saw the Dow Jones and S&500 both gain 1.3 per cent and the Nasdaq 0.9 per cent, capped the best four week stretch for the market in more than a year. Among the highlights on Friday was news that European bond yields had fallen on concerns that the German economy may be slowing and rate cuts may lie ahead. All eyes will be on Black Friday results this week, with many suggesting a return to pre-COVID days, with Amazon (NYSE:AMZN) finishing flat but both Walmart (NYSE:WMT) and Target (NYSE:TGT) adding 0.9 and 0.7 per cent respectively.

Sometimes records aren’t enough, power of pension funds grows, oil remains in focus

Despite reporting record revenue and eye watering growth, NVIDIA’s result wasn’t enough to spur another rally in the share price, having more than doubled in value already this year. The company is expected to continue benefitting from the rollout of AI-powered computing equipment for several decades, but has hit a speed bump this month as investors digest growing uncertainty around the economy. Australian Super’s power is on full display amid the takeover of Origin Energy (ASX:ORG), with the group all but forcing either a higher offer or ending of the deal, that they say does not fully value the company. This is a story that is likely to continue as Australia’s large pension funds grow ever larger with default contributions. Despite hopes that the energy price may garner less headlines, a falling price is likely to trigger production cuts in the coming months, which may once again pressure prices.