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Australia Market advances to 11-month high

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Capital Market
Last Updated : Jan 20 2021 | 5:16 PM IST
The Australian share market finished session at an 11-month high on Wednesday, 20 January 2021, as investors risk sentiments bolstered by hopes for additional U.S. stimulus and a faster rollout of coronavirus vaccines under incoming U.S. President Joe Biden, who will be sworn into office later today. Meanhile, U.S. Treasury Secretary nominee Janet Yellen signals her readiness to introduce large-scale fiscal stimulus measures at a Senate confirmation hearing also underpinned sentiments.

At closing bell, the benchmark S&P/ASX200 added 27.78 points, or 0.41%, to 6,770.40, an 11-month high. The broader All Ordinaries climbed up 36.02 points, or 0.51%, to 7,051.01.

Improvements have also been rather broad based with gains across nearly every sector. The information technology sector out-performed, with Afterpay touched new highs of A$142.30 before closing 5.2 per cent higher at A$141. Wisetech (WTC) was another big mover in the IT space with the logistics software firm advancing 4.8%.

Shares of resources were also higher, with mining giant BHP gaining 0.9 per cent to A$46.30 after increasing its iron ore production estimates to as much as 255 million tonnes this financial year. Iron ore production was 6% higher at 128.4Mt with record production achieved at its WA operations. FY21 guidance for iron has also increased to between 245 and 255 Mt as a result of the restart of Samarco operations (Brazil) in December 2020. However, coal, copper and petroleum production was down on the corresponding half a year ago. BHP also flagged an impairment charge up to $1.25 billion against NSW Energy Coal (NSWEC) in the Hunter Valley.

ECONOMIC NEWS: Australia Westpac Consumer Confidence Index Weakens In January- Australia consumer confidence took a hit in January, the latest survey from Westpac Bank revealed on Wednesday with a consumer confidence index score of 107.0. That's down from 112.0 in December, although it remains above the line of 100 that separates optimism from pessimism. The January reading represents a 4.5 percent monthly drop following the 4.1 percent increase in the previous month.

CURRENCY NEWS: The Australian dollar changed hands at $0.7735, still off levels above $0.775 seen last week.

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First Published: Jan 20 2021 | 5:04 PM IST

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