ASX ends strong as market tries to claw back losses
The big four banks and tech stocks from companies like Afterpay have rallied higher on the Aussie share market today after a tumultuous week of losses and steep declines.
National
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The Australian share market has posted gains across the board after jobs figures from the US reassured traders that the world’s largest economy wasn’t on the brink of recession after all.
The benchmark S&P/ASX200 index closed Monday up 46.5 points, or 0.71 per cent, to 6,563.6 points, while the broader All Ordinaries was up 49.8 points, or 0.75 per cent, to 6,686.7 points.
“It’s been a pretty good start to the week,” said CommSec market analyst James Tao.
Last week was the ASX’s worst this year as it plunged along with global markets after disappointing US manufacturing data suggested the US economy was stalling, but US employment figures released on Friday showed US unemployment at a 50-year low.
“The fact the US economy looks as though it’ll keep its head above water for a little while longer has sparked a run back into equities,” IG markets analyst Kyle Rodda wrote.
While volumes were subdued with public holidays in NSW, Queensland, ACT and South Australia, every sector finished higher.
Tech stocks gained the most, by 1.4 per cent, with Wisetech Global rising 4.1 per cent to $34.86, Afterpay climbing 2.3 per cent to $34.92 and Xero gaining 1.3 per cent to $63.08.
The consumer staples, health care, telecom stocks and property trust sectors were all up between 1.3 and 1.0 per cent, while the other sectors gained more modestly.
In the heavyweight financial sector, all four big four banks were higher. ANZ was up 0.5 per cent to $27.30, Commonwealth up 0.5 per cent to $77.94, NAB up 0.3 per cent to $27.92, and Westpac up 0.7 per cent to $28.61. Macquarie Group fell 0.5 per cent to $125.81.
MyState was up 1.6 per cent to $4.60 after the Tasmania-based lender appointed Gary Dickson, formerly of ME Bank, as its interim chief financial officer. In the mining sector, BHP was up 0.2 per cent to $35.38, Rio Tinto was down 0.1 per cent to $87.60, while Fortescue Metals rose 3.4 per cent to $8.91. Resolute Mining climbed 1.1 per cent to $1.415 after announcing that it had produced 103,201 ounces of gold in the September quarter, up 32 per cent from the June quarter.
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Nine Entertainment fell 0.8 per cent to $1.885 after it built its stake in Macquarie Media past 90 per cent, allowing it to bring the radio network under full ownership.
Eden Innovations rose 15.9 per cent to 5.1 cents after the Perth concrete additive company received its first order from a customer in the large New York City market.
Telstra was up 1.5 per cent to $3.47 and Vodafone Australia co-owner Hutchison rose 8.7 per cent to 12.5 cents The Aussie dollar is buying 67.48 US cents, up from 67.54 US cents on Friday. In cryptocurrency, Bitcoins were trading for around $A11,600 on Australian exchanges, down 3 per cent from Sunday.
Looking forward, the US and China will meet again on Thursday and Friday for another round of trade talks, this time in Washington.
ON THE ASX:
* The benchmark S&P/ASX200 index closed up 46.5 points, or 0.71 per cent, at 6,563.6 points.
* The All Ordinaries closed up 49.8 points, or 0.75 per cent, to 6,686.7 points.
* At 1639 the SPI200 futures index was up 53 points, or 0.82 per cent, to 6,540.
One Australian dollar buys:
* 67.48 US cents, from 67.54 US cents on Friday
* 72.11 Japanese yen, from 72.12
* 61.47 euro cents, from 61.55 cents
* 54.75 British pence, from 54.71 pence
* 106.87 NZ cents, from 106.89 cents.
Originally published as ASX ends strong as market tries to claw back losses