Australian shares ascend to two-month high
Derek Rose |
The Australian share market has gained ground for the 10th time in the past 12 sessions, closing at a two-month high amid optimism over China’s recovery and receding fears of a global banking crisis.
The benchmark S&P/ASX200 index on Monday finished up 19.9 points, or 0.27 per cent, to 7,381.5 in its highest close since February 16.
The broader All Ordinaries finished 17.7 points higher, or 0.23 per cent, at 7,578.1.
“So this week there’s a lot of data out from China, and there’s a big expectation that they’re going to show continuing momentum and that their economy’s improving,” Saxo Markets Australian analyst Jessica Amir told AAP.
There’s also more domestic economic indicators due out this week that could well confirm that the Reserve Bank of Australia “can take their foot off the gas with rate hikes”, Ms Amir said.
Eight of the ASX’s 11 official sectors finished higher, with the interest-rate-sensitive property sector the biggest gainer, climbing 1.5 per cent.
Warehouse owner Goodman Group added 1.3 per cent, Westfield operator Scentre Group climbed 2.6 per cent and office tower owner Dexus grew 1.6 per cent.
The heavyweight mining sector was 0.1 per cent higher, with goldminers weighing on the sector as the precious metal came off its rencet highs. Gold was trading for around $US2,015 an ounce, down from a two-year high of $US2,040 last week.
Northern Star, Newcrest and Evolution were all down a little over two per cent, while Regis Resources slumped 11.2 per cent after announcing lower-than-expected production in the March quarter.
BHP added 0.3 per cent to $46.61 as the Federal Court approved its $9.6 billion takeover of OZ Minerals following overwhelming support from shareholders last week.
“So that’s a pretty big win,” Ms Amir said. “That basically means that an Australian company will become the biggest producer of copper in the world,” and the red metal is expected to be in short supply through to 2040.
Fortescue Metals gained 0.4 per cent to $22.51, Rio Tinto climbed 0.3 per cent to $121.25 and South32 advanced 0.5 per cent to $4.46.
Lithium miners were also higher, with Sayona climbing 10.3 per cent after increasing its resource estimate for the lithium at its prospect in Quebec, and Lake Resources soaring 18.5 per cent after announcing progress at its Kachi lithium project in Argentina.
The big banks were mostly up following better-than-expected earnings reports from US banking giants JPMorgan Chase, Citigroup and Wells Fargo on Friday.
CBA added 0.6 per cent to $99.74, NAB climbed 0.7 per cent to $28.67 and ANZ advanced 1.0 per cent to $24.21. Westpac was the exception, basically flat at $22.27.
EML Payments finished up 13.9 per cent to 65.5c after the troubled prepaid card company announced new leadership and a strategic review. Kevin Murphy will be interim CEO, replacing Emma Shand who resigned on Monday “given the change in operational priorities”.
The Brisbane-based company has appointed Barrenjoey to consider all options to maximise shareholder value, including selling off all or parts of the business.
In small caps, AML3D added 5.1 per cent to 8.2c after inking a partnership Phillips Corp that creates opportunities for Phillips to resell AML3D’s 3D metal printed components to the US government, including the military.
The Australian dollar was buying 67.12 US cents, down from 67.76 US cents at Friday’s ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 19.9 points, or 0.27 per cent, at 7,381.5.
* The broader All Ordinaries was up 17.7 points, or 0.23 per cent, to 7,678.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.08 US cents, from 67.76 US cents at Friday’s ASX close
* 89.88 Japanese yen, from 89.67 Japanese yen
* 61.04 Euro cents, from 61.22 Euro cents
* 51.04 British pence, from 54.08 British pence
* 108.15 NZ cents, from 107.49 NZ cents.
AAP
