Shares in Kogan.com Ltd (ASX: KGN) have climbed around 6% today and now trade at $5.93, a shade off the intraday high of $5.96.
Despite no sensitive news out of the company’s camp today, ASX retail shares have fared well following the outcomes of last night’s federal budget.
Treasurer Josh Frydenberg outlined Australia’s economic roadmap for the coming 12 months with a clear focus on cost of living, infrastructure, innovation and national security.
Why are Kogan shares climbing again today?
Kogan had already begun its ascent from 52-week lows in the past month or so, printing a 12% gain in that time.
Much of the upside has been driven by a small but sure rotation back into tech- and growth-oriented shares, with the S&P/ASX All Technology Index (ASX: XTX) spiking 10% this past month.
However, last night’s budgetary release appears to have inflected positively on ASX retail shares today.
The wider basket has inched forwards whilst competing retailers such as JB Hi-Fi Limited (ASX: JBH) have posted small gains (shown below).
Market sentiment appears to have turned bullish in the near term once again, with gains across all major indexes except metals and mining.
Whether that is a direct impact from the federal budget remains to be seen, but it surely is a reversal of a trend in situ over the last few months.
Mining and resources have led the way so far in 2022, with the S&P/ASX 300 Metals & Mining Index (ASX: XMM) surging 13% in that time, whilst healthcare indexes have fallen around 10%.
Meanwhile, tech and consumer cyclical-based indexes have fallen hard since January. Though they have staged a comeback, as reported previously.
Momentum has continued into today’s session, with the volume of shares traded more than 50% of the four-week average.
Even still, Kogan still has a ways to go, with shares down 33% this year to date and 51% in the past 12 months.
The post Kogan (ASX:KGN) shares spike another 6% post federal budget appeared first on The Motley Fool Australia.
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More reading
- Up 8% in a month, are Kogan (ASX:KGN) shares staging a comeback rally?
- Sell rating: JB Hi-Fi (ASX:JHB) share price tipped to sink 28%
- These are the 10 most shorted ASX shares
- 3 ASX growth shares down more than 50% in a year
- On fire! Why is the Kogan (ASX:KGN) share price up 8% right now?
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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