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The Aussie market is shrugging off a mixed lead from Wall Street to trade higher at lunch on Friday. The ASX 200 is trading near the highs of the morning and is 28 points or 0.46% higher at 6,119. It was up 34pts or 0.55% at the best levels of the morning.

If the market is able to hold onto its current level of gains then the ASX 200 will finish the week higher by 1.6%, making it the best weekly gain in 4 weeks. Toady’s advances have been led by IT, healthcare and industrials while financials, communications and real estate sectors are leading losses.

Heavyweight health and mining names like CSL Ltd (CSL), BHP Group (BHP) and Fortescue Mining (FMG) are doing most to lift the broader market. Tech names like Computershare (CPU), Afterpay (APT) and Xero (XRO) are also making solid gains. The Commonwealth Bank (CBA) is the largest individual weight and is falling for a third day in a row after releasing its FY20 profit results on Wednesday. CBA shares are down 1.4% today.

National Bank (NAB) is outperforming its peers on the release of its Q3 update. Revenue was 10% higher on the year before due to higher markets & treasury income. Cash profit fell 7% to $1.55 billion. Margins were relatively stable as the bank experienced ~$55 billion worth of loan deferrals (residential & business) due to the pandemic.

One of the biggest moves is for Mesoblast (MSB) which has shot up by 38% after a US FDA advisory committee supported the efficacy of MSB’s remestemcel-L therapy for children suffering acute respiratory symptoms of COVID19. While this is a positive, the FDA is still yet to approve the therapy with a decision to be made on September 30. MSB shares have wildly fluctuated this week leading up to the advisory meeting.

Elsewhere it has been a quieter day on the reporting front, Baby Bunting (BBN) is gaining 7% as sales revenue rose 10% for FY20 to $405 million to help lift earnings (EBITDA) but NPAT fell 14%. Newcrest Mining (NCM) is down 0.8% on its FY20 results where higher gold prices helped lift profits as production fell 13%.

The AUD is weaker, buying 71.39 US cents following RBA governor’s address to a parliamentary committee and slightly sluggish Chinese data.

Published by CommSec