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Big bank bounce drives market higher

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A strong performance by the big banks has helped the Australian share market post its best session since November.

National Australia Bank, ANZ, Commonwealth Bank of Australia and Westpac all rose by between 2.45 per cent and 2.8 per cent, leading the benchmark S&P/ASX200 index to a gain of 1.7 per cent.

The Australian dollar held its ground to remain above 75.5 US cents.

OptionsXpress market analyst Ben Le Brun said it was a positive start to the new trading week, led by the financial sector.

“We are bouncing back with a vengeance today, hopefully we can maintain that momentum for the rest of the week,” he said.

Investors will be watching key international data, including Chinese retail sales figures on Wednesday and the outcome of the US Federal Reserve meeting on Thursday, Mr Le Brun said.

He said the major banks had been under pressure since announcing half year earnings in May, followed by the federal government’s announcement of a planned $6.2 billion bank levy.

Big miners had a mixed day, with BHP Billiton up 0.6 per cent stronger but Rio Tinto down 0.5 per cent and Fortescue Metals Group 2.7 per cent weaker.

CSL climbed 1.9 per cent after the vaccines and blood products supplier said it will pay $466 million for an 80 per cent stake in a China-based plasma therapies manufacturer.

Ten Network shares are in a trading halt after its billionaire shareholders decided not to support a new funding deal for the loss-making commercial free-to-air broadcaster.

Shares in infant formula supplier Bellamy’s are also in a trading halt as it launched a $60.4 million issue of new shares and acquired a canning facility that the company hopes will help improve margins and satisfy Chinese regulatory demands.

ON THE ASX:

* The benchmark S&P/ASX200 gained 95 points, or 1.67 per cent, to 5,772.8 points.

* The broader All Ordinaries index gained 86.3 points, or 1.51 per cent, to 5,801.8 points.

* The June SPI200 futures contract was up 92 points, or 1.62 per cent, at 5,782 points.

* National turnover was 2.3 billion securities traded worth $7.4 billion.

CURRENCY SNAPHOT AT 1700 AEST:

CURRENCY ASK BID PREVIOUS

AUD/USD 0.7551 0.7549 0.7539

AUD/JPY 83.09 83.05 82.87

AUD/EUR 0.6747 0.6743 0.6728

AUD/NZD 1.0464 1.0456 1.0468

AUD/GBP 0.5958 0.5956 0.5956

GOLD:

The spot price of gold in Sydney at 1700 AEST was $US1,256.31 per fine ounce, down $US15.89 from $US1,272.20 per fine ounce on Friday

BOND SNAPSHOT AT 1630 AEST:

* CGS 4.50 per cent April 2020, 1.7031pct, from 1.7067pct on Friday

* CGS 4.75pct April 2027, 2.4004pct, from 2.4012pct

Sydney Futures Exchange prices:

* June 2017 10-year bond futures contract at 97.575 (implying a yield of 2.425), from 97.57 (2.43pct) on Friday

* June 2017 3-year bond futures contract at 98.25 (1.75pct), from 98.24 (1.76pct).

Published on: Tuesday, June 13, 2017

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