The Aussie market is rebounding from two consecutive sessions of losses with the ASX 200 climbing 52 points or 0.74% to 7064. Local shares are following a strong lead from Wall Street which saw all-time highs and record closes for the S&P 500 and tech heavy Nasdaq as investors shrug off concerns over the coronavirus ongoing outbreak.
Gains have been broad based with every sector advancing. The biggest improvements are coming from the communications with Telstra (TLS) up 2%, IT and industrials. Heavyweights such as the big four banks, CSL Ltd (CSL) and Woolworths (WOW) are also major contributors to broader gains.
The main decliners include energy names, as oil prices continue to slide to 13 month lows. Treasury Winer Estate (TWE) is also a weight as it eases 3.3%. The reporting season is in focus with a number of high profile companies releasing results. Adelaide based oil & gas firm, Beach Energy (BPT) is falling quite sharply, down 3.8% after a weaker than expected first half profit result. Net profit fell 2% to $278.5 million while revenue fell 10%. BPT also adjusted its FY20 production outlook lower.
Suncorp (SUN) has also come under selling pressure as the Queensland based financial services firm missed expectations. While its headline net profit after tax (NPAT) surged over 150% to $642 million, mostly on the back of the sale of several non-core businesses, profit from continuing operations fell roughly 6%. Macquarie Group (MQG) is also weaker by 0.5% as the investment bank still expects FY20 results to be slightly below FY19 as advised at a trading update.
Challenger (CGF) is soaring 11% with the fund manager reporting solid growth in revenue and assets under management (AUM). It is also on track to be at the upper end of FY20 guidance. Toll road operator, Transurban (TCL) and gold miner Northern Star (NST) are both more than 1% higher on profit results.
The Aussie dollar has firmed back above 67 US cents after some strong home loan value data, which further indicates a resurgence in the Aussie property market.
So far, 1.4b units have traded worth $2.9b with 628 stocks higher, 404 weaker and 351 unchanged.
Published by CommSec