The market rally for the Aussie market has continued with the ASX 200 lifting another 102 points or 1.8% to 5716 at lunch, following a near 2.2% jump on Monday. Market action was a little quieter than usual overnight with both the US and UK markets observing public holidays, giving local shares little to go off this morning.
Winners are easily outweighing losers as improvements have been broad based with every sector advancing. Property trusts are leading other indices higher while communications, industrials and energy are also outperforming. Materials are underperforming with a relatively small gain of 0.6%.
Financials are contributing most to market moves with the big four banks all lifting. The Commonwealth Bank (CBA) is 1.5% higher while the remaining big banks are at least 3% firmer. Buy-now pay-later provider, Afterpay (APT) hit another record high of $50.01 in early trade but has come off those highs. APT is currently 2% higher.
Optimism around the potential further assistance for the local tourism industry continues to give travel companies a boost. Flight Centre (FLT) is climbing 9% and Webjet (WEB) is 7% firmer. Helloworld Travel (HLO) is outperforming its peers as it rises 26%. Still, FLT is down 64% in 2020 while WEB is 51% lower and HLO is 59% weaker.
Qantas (QAN) is also higher by 4% but Air New Zealand (AIZ) isn’t faring as well, as it trades flat. The kiwi airliner is expecting to report an underlying loss for FY20 driven by a 90% reduction in capacity over 4Q20.
Coca-Cola Amatil (CCL) has had a mixed session so far after providing a trading update at its virtual AGM. The drinks group saw sales impacted heavily in April due to COVID19 lockdown restrictions. Volumes were down 30% on the same time last year. While sales picked up slightly for the three weeks in May, volumes are still down 26%.
The Aussie dollar is firming from a low of 65.38 US cents and is now buying 65.7 US cents. Weekly consumer confidence has lifted for an eighth consecutive week, up 0.4% to 92.7pts. A number below 100 denotes more pessimists than optimists. So far, 2.1b units have traded worth $2.9b with 761 stocks higher, 340 weaker and 339 unchanged.
Published by CommSec