US stimulus pumps ASX, $A as coronavirus crisis changes perspectives

A rollercoaster session for Australian shares had the market grasping its first two-day win streak in five weeks.

The Townsville Brewery are delivering their beers by 'BrUber', while the coronavirus social gathering rules are in place, says head Brewer Sam Lloyd. Picture: Alix Sweeney

In another rollercoaster session for Australian shares, the market surged out of the gates, gave up most of its initial gains, but strode higher in the closing march to clutch its first two-day win streak in five weeks, since the start of the coronavirus rout.

By the close, the benchmark S&P/ASX 200 was higher by 262.4 points, or 5.54 per cent, at 4998.1, still off a daily high of 5024.5 hit early in the session.

Meanwhile, the All Ords put on 253 points, or 5.3 per cent, to 5006.2.

News of bipartisan agreement on US stimulus plans was the key driver of the late rally - with the two sides said to have passed a stimulus deal worth $US2 trillion.

That also put a rocket under the Aussie dollar, sending it 1.2 per cent higher and back above 60c at the local close to trade at US60.30c.

Wednesday’s rally comes after US stocks took their largest percentage rise since 1933, again on stimulus hopes and as the US Federal Reserve continues to provide support.

Still, there’s a lot of ground to make up after a horror three weeks on global markets.

RBC’s Karen Jorritsma described recent moves as “whiplash” saying a decline in the volatility index was a pleasing sign, but liquidity was still a cause for concern.

“Starting to smell like a case of 2009 again with capital raisings coming thick and fast, Cochlear make a clever first mover advantage asking for $800m upfront on a 12 per cent discount,” she noted.

“Feedback from investors suggests this will be easily digested by a market with plenty of cash on the sidelines looking for a high quality home. PM’s and bankers alike are running the rule over balance sheets across the index looking for who goes next. Message from the fundies is clear, better to go BIG and not have to ask twice.”

To equities, and unloved names were back in favour as risk sentiment was dialled up during the session.

Qantas jumped by 26 per cent to close at $3.27 as it raised more than $1bn in debt, with Citi and JP Morgan among the banks on the syndicate.

Even Virgin got a boost - pushing higher by 14.5 per cent to 7.1c as it stood down more than 8000 of its workforce.

Across the rest of the travel names, Flight Centre remains in a trading halt until March 30, last trading at $9.91 and Corporate Travel was up 0.13 per cent at $7.57.

Financials led gainers, climbing 8.7 per cent, as all of the big banks climbed out of their recent doldrums.

The Commonwealth Bank was up 9.5 per cent to $62.40, NAB gained 9.7 per cent to $15.79, ANZ climbed 11.6 per cent to $16.57 and Westpac added 9.2 per cent to $15.85.

In the mining sector, BHP added 10.2 per cent to $31.30, Rio Tinto gained 5.4 per cent to $83.82 and Fortescue Metals gained 5.0 per cent to $10.22. Goldminers Newcrest, Evolution and Northern Star were up between 5.3 and 10.3 per cent.

Bell Direct market analyst Jessica Amir said gold - which was trading for $US1614 an ounce as the market closed - was enjoying its best four-day stretch in years.

Buy now, pay later company Afterpay was the best performing ASX 200 component, climbing 33.8 per cent to $15 after falling as low as $8.01 on Monday.

CSL dipped 0.4 per cent to $284.36, dragging down the healthcare sector. Cochlear, Webjet, Seafarms Group and oOh!Media were in trading halts amid efforts to raise capital as coronavirus disruptions threaten to eat into firms’ balance sheets.

Noni B, Rivers & Katies owner Mosaic Brands fell 23 per cent to 23 cents after shuttering all its stores from Thursday and standing down all its 6800 team members, who have access to their leave entitlements.

Dominos Pizza’s lost 8.2 per cent to $49 after closing its New Zealand stores to comply with the country’s coronavirus lockdown.

Wesfarmers rose 5.5 per cent to $33.41 after saying it will shut its 25 Kmart outlets in NZ but will keep Bunnings open.

Star Entertainment Group gained 0.3 per cent to $1.62 after announcing it would suspend 8100 of its staff and severely curtail its casinos.

Invocare lost 12.2 per cent to $9.83 after announcing the government’s social distancing measures would affect its ability to offer a full range of funeral services.

Additional reporting AAP