Australian stocks advanced on Thursday, marking the third day of gains in four sessions despite previous concerns that high interest rates might persist. By midday, the S&P/ASX 200 had risen by 0.5%. This uptick was partly driven by National Australia Bank (NAB), which saw its shares increase by 2.5% despite a decline in cash profit. This performance positively influenced the broader financial sector, which climbed 1.5%. NAB announced a steady interim dividend and an expansion of its share buyback program, providing a slight boost to its early trading figures.

Conversely, Woolworths experienced a 4% drop after its half-year profit fell short of expectations, exacerbated by rising supply chain costs and modest deflation in food prices. Nonetheless, the company reported a 2.8% increase in sales for the March quarter, reaching $16.8 billion, with a notable 17.6% jump in online sales, although these figures did not meet analyst forecasts.

Elsewhere, automotive parts retailer Bapcor’s shares plummeted by 31% following a downgrade in profit guidance, attributing the downturn to consumer hesitancy to spend amid escalating living costs.