ASX closes on brink of record high, as CBA continues to soar

Share market bellwether Commonwealth Bank rose to a record Australian high on Wednesday, helping to drag the market higher.

Australia’s stock market soared to within one per cent of a record high as investors factored in interest rate cuts and the Commonwealth Bank became the first Australian company to surpass the $300bn market cap.

The benchmark ASX 200 index gained 75.10 points or 0.89 per cent to 8,541.80 points while the broader all ordinaries also finished higher up 79.30 or 0.91 per cent to 8,770.20.

The Australian dollar slid 0.09 per cent and is now buying 64.56 US cents.

Wednesday’s trading was dominated by CBA, which saw Australia’s largest bank pass $181 a share for the first time.

The Commonwealth Bank became the first Australian company to pass the $300bn market cap. Picture: NewsWire / Luis Enrique Ascui

VanEck senior portfolio manager Cameron McCormack said CBA’s “remarkable” rally continued as the major bank passed a $300bn market cap, thanks to weaker resources stock.

“Particularly offshore investors looking at the Australian market are more likely to prefer the local banks as they tend to outperform when resources underperform,” he said.

“We are not looking at a reverse of that trend.”

But CBA was not alone, with Westpac shares also rallying 1.47 per cent to $33.10 even though ASIC made the decision to start legal proceedings against subsidiary RAMS for alleged systemic misconduct.

NAB also jumped 1.07 per cent to $38.60 and ANZ rose 0.95 per cent to $29.64.

On an overall positive day, nine of the 11 sectors finished in the green led by energy, consumer discretionary and financial stocks.

Woodside Energy rose 2.89 per cent to $22.80, Santos gained 0.92 per cent to $6.59 and Yancoal Australia added 1.93 per cent to $5.29.

Wesfarmers shares gained 0.59 per cent to $84.60, JB Hi Fi rallied 2.05 per cent to $112.24 and Harvey Norman jumped 2.98 per cent to $5.53.

On an overall positive day, nine of the 11 sectors closed in the green. Picture Newswire/ Gaye Gerard.

Australia’s share market followed a late rally on Wall Street overnight on better than expected US job openings which showed businesses were looking for 7.4 million staff members in April.

A strong lead in from Wall Street and worse than expected ABS data which showed Australia is back in a GDP per capita recession helped boost the local market.

Mr McCormack said the market reacted positively to a GDP print showing economic growth of just 0.2 per cent for the quarter or 1.3 per cent for the year.

“The market is starting to price in more rate cuts on the back of some of the softer data coming through, including the weaker export data,” he said.

In company news Virgin Australia announced plans to return to the ASX via a $685m initial public offering. The IPO priced at $2.90 per share and if the shares are fully subscribed will re-list at a market value of around $2.3bn.

Japanese entertainment giant MIXI has upped its bid to buy Australian gambling company Pointsbet and is now offering $402m to take over the company. Shares in Pointsbet rallied 10.60 per cent to $1.20.

Fashion-forward jewellery and accessories brands Lovisa announced a change in leadership with Mark McInnes moving into the role of executive deputy chairman. Shared surged 9.10 per cent to $32 on the announcement.

DroneShield shares marched higher up 12.50 per cent to $1.58 on news the UK government is planning on spending GBP 2bn or $AU4.2bn to boost its drone technology in an effort to boost its military capabilities.

Originally published as ASX closes on brink of record high, as CBA continues to soar