After a small blip on the market yesterday, local shares have today carried on its strong form seen earlier in the week. At lunch, the ASX 200 is jumping another 140 points or 2.4% to 5915. Making it the third day this week with a gain in triple digits. The benchmark index has also breached the 5,900 point barrier this morning.
Local gains followed a strong session on Wall Street with the Dow Jones index climbing 2.2%. Investor optimism is increasing globally as economies reopen and begin the post lockdown economic recovery. RBA Governor, Phillip Lowe, while speaking before a senate committee, also noted that the “economy is doing better than earlier feared”.
Gains are widespread on the local market with every sector advancing Financials are again leading the charge higher as the big four banks continue to gain ground. ANZ Bank (ANZ) is the most improved as it rises 6.6% with National Bank (NAB) following closely behind. Commonwealth Bank (CBA) is up 4% and underperforming its peers over the past few sessions, but is outperforming the other big four banks in 2020 with the smallest decline of 16% so far.
Regional Bendigo & Adelaide (BEN) is besting the big four banks as it jumps 7.9% after providing an update earlier this morning. The bank will set aside $148.3 million in Covid19 related provisions. BEN is a little more cautious in its thinking around the economy, expecting a slower recovery with “probabilities biased to the downside”.
Blackmores (BKL) has resumed trade after raising fund from institutional investors. The supplements company will still raise further funds via a retail Share Purchase Plan (SPP) to assist in accelerating growth in Asia and invest in efficiency programs. BKL shares are up 4.7%. Meanwhile toll road operator Atlas Arteria (ALX) is in a trading halt as it looks to raise $495m from shareholders and confirmed it will cancel its interim distribution with funds used to pay existing debt.
Nearmap (NEA) is climbing 18% after providing an update on its trading conditions with Annualised Contract Value (ACV) exceeding some analyst expectations at $102m year-to-date.
The Aussie dollar is still north of 66 US cents buying 66.35 US. So far, 2.2b units have traded worth $3.9b with 788 stocks higher, 335 weaker and 329 unchanged.
Published by CommSec