Australian stocks closed higher on Thursday, with the S&P/ASX 200 index adding 0.73% to 7,178.60 points. The benchmark index hit a three-month high during the session.

The A-REITs sector led the gains, rising 1.5%, as investors bought into the sector’s defensive qualities. The IT sector also rose 1.3%, as investors continued to bet on the sector’s long-term growth prospects.

The Consumer Discretionary sector rose 0.9%, as investors bought into retailers and other consumer-facing businesses. The Materials sector rose 0.7%, as investors bought into mining stocks.

The Energy sector was the only sector to decline, falling 0.4%, as oil prices fell.

Why Did Australian Stocks Close Higher?

There were a number of factors that contributed to the rise in Australian stocks on Thursday.

• Strong economic data: The Australian economy grew by 0.8% in the first quarter of 2023, beating expectations. This data helped to bo
• Positive corporate earnings: A number of Australian companies reported strong earnings results for the first quarter of 2023. This also helped to boost investor sentiment.
• Rising commodity prices: Commodity prices rose on Thursday, which helped to support the mining sector.
• Weaker U.S. dollar: The U.S. dollar weakened against the Australian dollar on Thursday, which made Australian stocks more attractive to foreign investors.

Best-Performing Stocks

The best-performing stock on the ASX 200 was Megaport Ltd (ASX:MP1), which rose 14.44% to a new 52-week high of $10.62. The company provides software-defined networking services to businesses.

The second-best-performing stock was Nuix Ltd (ASX:NXL), which rose 13.85% to $1.48. The company provides software for managing electronic data.

The third-best-performing stock was Insignia Financial Ltd (ASX:IFL), which rose 6.93% to $2.93. The company provides wealth management services.

Worst-Performing Stocks

The worst-performing stock on the ASX 200 was Regis Resources Ltd (ASX:RRL), which fell 10.77% to $1.87. The company mines gold and copper.

The second-worst-performing stock was Whitehaven Coal Ltd (ASX:WHC), which fell 5.85% to $7.08. The company mines coal.

The third-worst-performing stock was Resolute Mining Ltd (ASX:RSG), which fell 5.75% to $0.41. The company mines gold and silver.

What’s Next for Australian Stocks?

It is too early to say what the future holds for Australian stocks. However, the current economic and corporate earnings environment is supportive of further gains in the near term.

Conclusion

Australian stocks closed higher on Thursday, led by gains in the A-REITs and IT sectors. The best-performing stock on the ASX 200 was Megaport Ltd (ASX:MP1), which rose 14.44% to a new 52-week high of $10.62. The worst-performing stock on the ASX 200 was Regis Resources Ltd (ASX:RRL), which fell 10.77% to $1.87.

The current economic and corporate earnings environment is supportive of further gains in Australian stocks in the near term. However, it is important to monitor the global economic outlook and any changes in the stock market world.