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The Aussie market is looking at a positive finish to the end of financial year. The ASX 200 is rebounding from back-toback losses to start the week and is adding 37 points or 0.5% to 7,339 around midday. The big lift comes despite a flat session on Wall Street, although the Nasdaq and S&P 500 did hit record highs.

The ASX 200 is also on track to advance for a ninth consecutive month in June. The benchmark index is currently adding 2.5% for the month and is roughly 8% higher for the quarter and nearly 25% firmer for the financial year. This would make it one of the best financial years on record for the ASX 200.

Today, local gains have been broad with nearly all sectors improving. Communications have been a standout with a 2.8% lift while materials are another big mover. Major iron ore miners like BHP Group (BHP), Rio Tinto (RIO) and Fortescue Metals (FMG) are lifting as much as 2.5% despite a 2.7% drop in the iron ore price overnight. Only the energy and utilities are sectors currently in reverse.

Telstra (TLS) is a big contributor to the gains across the communications sector. The telco announced that it has agreed to sell a 49% stake in its Towers business, consists of roughly 8,200 mobile towers, to a consortium including several superannuation funds and Australia’s Future Fund. Net proceeds from the sale is expected to be $2.8 billion with approximately half of those funds expected to be returned to shareholders in FY22. TLS shares are up 4.3%.

AGL Energy (AGL) is one of the worst performers on the ASX 200 after the company confirmed its intentions to split its business into two ASX-listed companies. One will be the energy generation business to be known as Accel Energy while the other will be its retail business to be called AGL Australia. The split is expected to be completed by 4Q22. AGL shares are down 7%.

Collins Foods (CKF) is down another 5.5% after a similar decline yesterday. The operator of KFC Australia and Europe reported its FY21 earnings yesterday and has since seen a broker downgrade in response to yesterday’s release.

The Aussie dollar is weaker for the month and quarter as it buys 75.18 US cents but is well higher over the course of the financial year, with a gain of ~9%.

Published by CommSec