The Australian sharemarket has snapped a three-session 6.6 per cent slump with strong improvements on Tuesday. The ASX 200 is lifting by 2.94 per cent to 5,887.9, with all stocks belonging to the index (which are not in a trading halt) improving. This follows a more encouraging lead from Wall Street last night.
The S&P 500 – a broad measure of how the US sharemarket is performing – rose by 0.8 per cent last night in what ended up being a very messy session. Initially, US stocks were down by as much as 2.5 per cent on concerns of a spike in coronavirus infections in China, the US and Japan together with underwhelming monthly economic data in China yesterday. What helped push US equities higher however, was speculation of another White house stimulus package together with more help from the Federal Reserve via a corporate bond buying program. Importantly, Dow Futures are improving by 0.9 per cent, pointing to what could be a better start to trade in the US tonight.
Gains are very widespread on the Australian sharemarket on Tuesday. In fact, 199 of the 200 stocks that make up the ASX 200 are currently improving. The lone stock not joining in on the gains is Jumbo Interactive (JIN), which happens to be in a trading halt pending the release of an announcement. JIN engages in the retail of lottery tickets through internet and mobile devices primarily in Australia and Fiji (including Oz Lotto).
Afterpay (APT) is up 8.3 per cent and has once again hit a record high. The buy-now-pay-later company is up 89 per cent so far this calendar year after more than doubling in price in 2019.
Village Roadshow (VRL) has extended the exclusivity period for its takeover discussions with BGH Capital by two weeks to 30 June. VRL has also left the door open for a ‘…further two week extension if the parties continue to actively pursue the potential transaction’. VRL shares are down 2.3 per cent. Super Retail Group (SUL) is surging by 11.2 per cent at lunch after successfully raising ~$158m from institutional investors at $7.19 per share.
Volume is relatively heavy once again, with 2.1bn shares traded worth $4.4bn. 943 stocks are up, 211 are down and 300 are unchanged.
Published by CommSec