The Aussie market is rebounding with some energy from a heavy decline yesterday, the ASX 200 is lifting 59 points or 1% to 5,876 at midday. Local shares have taken the lead from resurgent US markets as major indices advanced by roughly 1% even as COVID19 cases continue to rise, adding to concerns of a second wave.
Today’s gains are still unlikely to be enough to overcome a weekly decline with the benchmark index still down 1.1% over the course of the past five days.
Friday’s improvements have been rather broad based. Nearly all sectors are lifting with the health sector lagging behind after outperforming yesterday. CSL Ltd (CSL) is the largest individual drag on the market as it slides 1%.
The financial sector is the major standout with the big four banks all lifting at least 2%. Westpac (WBC) is up the most, higher by 2.9%. Wealth manager, AMP Limited (AMP) is among the best financial stocks with a 6% gain. The major miners and energy stocks are also making rather significant advances.
Qantas (QAN) is another major decliner, dropping as much as 9%, with the airliner resuming trade this morning. The national carrier successfully raised $1.4 billion from institutional investors, with another $500 million to be raised from retail shareholders. The funds will be used to shore up its balance sheet and fund its restructuring program to help the airline survive the impacts to the industry from COVID19. It is a mixed bag for the remaining travel stocks with both Flight Centre (FLT) and Webjet (WEB) down 2% but Air New Zealand (AIZ) is 2.5% higher.
Virgin Australia (VAH), which is in voluntary administration and has been suspended from trade since April, saw one of its last two bidders drop out. Cyrus Capital has pulled out due to a lack of engagement from administrators since submitting its bid at the start of the week.
The Aussie dollar has traded in a fairly tight range this morning and is buying 68.83 US cents. There are no major economic releases due in Australia today.
So far, 2.3b units have traded $4.5b with 705 stocks higher, 388 lower and 364 unchanged.
Published by CommSec