Australia Market closes at fresh 11-years high

The Australian share market closed session at fresh 11-years high in volatile trade on Tuesday, 21 May 2019, as investors risk sentiments underpinned with the Coalition's victory on Saturday. At closing bell, the benchmark S&P/ASX200 index rose 24 points, or 0.37%, at 6,500.10 points the highest since December, 2007, while the broader All Ordinaries jumped 19.70 points, or 0.3%, at 6,584.40.

Shares of banks surged after the Australian Prudential Regulation Authority (APRA) proposed dropping requirements for banks to use a minimum 7% interest rate when assessing a borrower's ability to service a loan, which it said would increase customers' maximum borrowing capacity. Commonwealth Bank rose 2% to a close of A$78.97, Westpac gained 2.7% to A$28.50, ANZ Bank gained 2% to A$28.43, and NAB gained 1.5%.

Shares of tech sector declined after US peers plunged overnight, with Technology One closing 13.5% lower at A$7.83, Computershare dropping 8.5% to A$16.47, and Afterpay Touch falling 4.9% to A$24.70.

Woolworths fell 3% to A$33.75 after being downgraded to 'underweight' by JP Morgan analysts with a price target of $31.

Lynas Corporation has gone into a trading halt "pending it releasing an announcement". The stock has been the biggest riser on the market today, rising 15% to A$2.27.

CURRENCY NEWS: The Australian dollar declined to three-year lows against the U.S. dollar on Tuesday, as the market prices in the increased likelihood of a rate cut in June. The Aussie dollar was last at 69.06 US cents.

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