Aussie market kicks off the new financial year in strong fashion. The ASX 200 is lifting 34 points or 0.52% to 6653 with broad based gains. The improved trade sentiment is providing a solid backdrop for equity markets. This follows both the US and China agreeing to re-commence trade negotiations and to not impose any new tariffs while talks continue at a meeting during the G20 summit over the weekend.
Nearly every sector is recording a gain with only the consumer discretionary sector in the red. The energy and tech sectors are among the most improved. Local oil & gas producers are lifting on reports that major oil producing nations will agree to continue to curb output for the next 6-9 months at an OPEC meeting this week.
The tech sector is rising despite Afterpay Touch (APT) falling again. It has been another volatile session for the payment services firm, which was down as much as 10% this morning. The share price also endured large price movements last Friday on reports that Visa could be looking to enter the buynow-pay-later sector. At lunch, APT is down just 3.2%.
In company news, Kogan.com (KGN) is up 3.8% after the online retailer signed an agreement to use another buy-now pay-later firm, Splitit (SPT), which is falling 2.3%. The service is said to be available in “the coming days”. Elsewhere, CocaCola Amatil (CCL) has completed its sale of the SPC fruit & vegetable business for $40 million. CCL is expecting a $14 million profit on the sale.
Gold stocks are among the major decliners with a more bullish tone for equity markets following the positive outcome for the global trade environment. Northern Star (NST) and Evolution (EVN) are each down more than 3%. Suncorp (SUN) shares are marginally higher even with its wholly owned subsidiary facing legal action in the NSW Supreme Court over fees paid to advisers in breach of duty of care and failing to act in the best interest of superannuation members.
There are signs that the Sydney housing slump could be drawing to a conclusion. Australia’s largest capital city recorded its first monthly price rise since July 2017 with a gain of 0.1% over June. Melbourne and Hobart also recorded monthly improvements of 0.2% but all other capital cities saw prices fall.
The Aussie dollar is still holding above 70 US cents but has eased from its high of 70.35 US cents and is currently buying 70.03 US cents. So far, 1b units have changed hands worth $2b with 641 stocks higher, 377 weaker and 310 unchanged.
Published by CommSec