Home老域名 › ASX soars in global rally, buoyed by banks and miners

ASX soars in global rally, buoyed by banks and miners

Positivity returned to the market on Tuesday, with investors buying big in banks and miners Photo: Peter BraigThe Australian sharemarket roared higher for a second day, driven up by a bounce in the banks and a positive day in China.

The market received an early boost from a strong session in Europe on a promise of more central bank stimulus, while Wall Street was closed for the Presidents’ Day holiday. Early gains fizzled out by midday, led down by the banks, until the big four returned to favour in afternoon trade.

At the close of trade the S&P/ASX 200 index ended at the day’s high of 4910 points, a gain of 1.4 per cent or 66.5 points. The All Ordinaries climbed 68 points or 1.4 per cent to 4961.6.

“The Asian leads looked pretty good and that translated through our market and the initial heaviness from the NAB quarterly update seems to have lifted,” Aurora Funds Management portfolio manager Sheriden Hure said.

The Shanghai Composite Index was up 3 per cent in late trade, helping turn around a negative start on Japan’s Nikkei, while the People’s Bank of China kept its fix on the currency stable, weakening it only slightly against the US dollar.

“Stability in the CNY [onshore yuan] is the order of the day and we should expect this to continue for this week,” IG chief market strategist Chris Weston said.  ‘Absolutely crazy’

He said Chinese new credit data stunned the market with “absolutely crazy” numbers. Initial forecasts of 2.2 trillion yuan were eclipsed, surging to 3.42 trillion, largely due to seasonal influences including the Lunar New Year.

Local company reporting season also gave rise to positive sentiment. The highlights included National Australia Bank’s quarterly profit which showed earnings rose 8 per cent to $1.7 billion, and a fall in bad debts. The market initially soured as it digested the results but turned around in the afternoon.

Its shares lifted 0.9 per cent to $24.98. The other banks all enjoyed a lift in the afternoon, with ANZ Banking Group ending 1.9 per cent higher at $23.27 and Westpac Banking Corporation up 1.2 per cent to $28.97.

Commonwealth Bank pared losses to end 2.3 per cent down to $72.60 as it traded ex-dividend.

“I think people are starting to get more comfortable with valuation levels… now we’ve seen CBA report and NAB provide an update,” Ms Hure said.

The miners enjoyed a strong day, lifted by a 6 per cent surge in the benchmark price of iron ore, which is now trading near a three-month high. Oil rose 4 per cent and futures pointed to a strong trade overnight.

BHP Billiton rose 3.8 per cent to $16.59, Rio Tinto climbed 2.2 per cent to $43.20 and Fortescue Metals Group surged 10 per cent to $1.88.

Energy stocks rallied too, as Origin Energy added 7 per cent to $3.96, Oil Search rose 5.8 per cent to $7.33 and Woodside Petroleum added 5.7 per cent to $29.54. Relief

The reporting season is providing some relief among investors that conditions aren’t bad as feared, Ms Hure said.

“There are a few results that have missed but generally the results that have reported have been reasonable,” she said.

CSL shares jumped 1.5 per cent to $106 after the blood products maker reported a 3.8 per cent lift in first half net profit of $US718.8 million ($1 billion).

In the other blue chips, Woolworths rose 1.5 per cent to $22.83, Wesfarmers added 0.8 per cent to $43.13 and Telstra fell 0.4 per cent to $5.42.

The day’s best performing stock was Mesoblast, up 16 per cent to $1.35 on positive trial results.

Of the laggers, the day’s weakest stock was Cover-More Group, losing 13.8 per cent to $1.77 after the company warned first half profits were down 16 per cent due to higher claim costs.

Gold miners also suffered, with Newcrest Mining down 5.6 per cent and Evolution Mining down 4.7 per cent.

The strongest sector was energy, up 4.8 percent, while the weakest was telecommunications, down just 0.06 per cent and the only sector to end in the red.

This story Administrator ready to work first appeared on 老域名购买.

Comments are closed.