Following further developments in the US election over the weekend, with Joe Biden announced as the new Presidentelect, the Aussie market has continued its recent postelection rally at the back end of last week and has started the new week with renewed strength. The ASX 200 has hit fresh 8-month highs, the best levels since early March, with the index now 100 points or 1.6% to 6,292 around midday.
Gains have been widespread as every sector makes advances. Leading the charge have been the materials, IT and communications, all with improvements of at least 2%. Energy, financials and utilities are seeing the smallest lifts. Financials are somewhat being weighed by a 1.1% decline in ANZ Bank (ANZ) which is trading ex-dividend today. Later this week, National Bank (NAB) and Westpac (WBC) will also trade ex-div.
In company news, BHP Group (BHP) announced it has completed a transaction to acquire a further 28% interest in Shenzi (Gulf of Mexico oil assets) from Hess Corporation for US$505 million, bringing BHP’s ownership to 72% & adds approximately 11,000boe per day of production. BHP will update its petroleum output guidance at its second quarter update. BHP is among the major contributors to broader market gains as it lifts 3.1%.
Crown Resorts (CWN) has also added 3% having received approval from the Victorian Government to commence limited operations at its Melbourne casino as COVID-19 restrictions continue to ease in the state. Gaming operations are expected to re-commence this Thursday, 12 November. VIC has now recorded 10 days without any cases or deaths.
Nine Entertainment (NEC) is 1.5% firmer after agreeing to acquire the rights to broadcast Wallabies, Wallaroos and domestic rugby competitions for the next three years. The deal with Rugby Australia is worth around $100 million. NEC will stream its rugby content on a newly launched Stan Sport platform.
Tabcorp (TAH) is down 2% after announcing that the wagering outage over the weekend may have an impact on earnings of under $10 million.
The Aussie dollar remains at elevated levels against the greenback and buys 72.7 US cents, having hit a high of 72.9 earlier this morning.
Published by CommSec