Local stocks surge to record high

The ASX surged past its 2007 record during the session before closing at an all-time closing high.

A man holds his sunglasses as he watches the market trading boards in the Australian Securities Exchange in Sydney. Picture: AAP

The ASX surged past its 2007 record yesterday to hit an intraday peak before closing firmly in the green at an all-time closing high.

The ASX benchmark S&P/ASX 200 rose 19.302 points, or 0.28 per cent, to 6845.1 points. The broader All Ordinaries index gained 16.863 points, or 0.24 per cent, to 6928.3 points.

“The sharemarket is looking through short-term uncertainties around the economy and focusing on lower interest rates and bond yields,” AMP Capital chief economist Shane Oliver said.

“Going through past bull market highs after a long period below can attract investors into the market, so it could push on for a bit.

“But after such a huge run — the market is now up 21 per cent this year to date — it is vulnerable to a short-term correction.

“We are coming into a seasonally weak part of the year. The August earnings reporting season could result in volatility and there are various risks in relation to trade wars, tensions with Iran and soft economic data. However, the combination of low bond yields, which means the sharemarket is comparatively cheap, monetary easing by the RBA and other central banks and a likely pick-up in global growth by year-end and Australian growth next year point to higher share prices on a 6 to 12-month horizon.”

BHP climbed 0.6 per cent to $40.83, while Rio Tinto crept up 0.2 per cent to $99. Fortescue grew 0.9 per cent to $8.22.

In financials, NAB edged up 0.2 per cent to $28.65 while Commonwealth Bank inched 0.2 per cent higher to $83.40. ANZ added on 0.5 per cent to $28.00 while Westpac lifted 1 per cent to $29.00 after CEO Brian Hartzer called for the scrapping of stamp duties.

Meanwhile, Telstra put on 1.3 per cent to $3.95.

Crown Resorts lost 1.9 per cent to $12.03 after the government ordered an integrity watchdog to investigate allegations of corruption. Crown came back saying it “absolutely rejects” the allegations, as it pledged to assist with investigations.

Temple and Webster shot up 4.6 per cent to $1.72 after the online retailer posted its maiden full-year profit, saying that broader economic conditions were working in its favour.

Gold miner Northern Star added 1.6 per cent to $13.41 after it said it was making good progress with its overhaul of its Pogo operation in Alaska, as it said it hit a new quarterly and annual sales record.

Waste collection company Bingo was the worst performer of the session after losing 3.8 per cent to $2.51 after Morgans analysts cut their rating on the stock to hold.

Elsewhere, explosives maker Orica was among the best performers, lifting 2.9 per cent to $21.10 despite telling the market that its Burrup operation would continue to drag for the year ahead.

The energy sector was mixed despite a lift in oil prices on Monday night.

Santos edged 0.3 per cent higher to $7.08 while Woodside Petroleum rose 0.3 per cent to $34.67. Origin Energy was unchanged at $7.86 while Oil Search backtracked 0.6 per cent to $7.08.

The Australian dollar was trading firmly lower at US68.99c in late trade.