Australia Market gains on bargain buying

The Australian share market finished session higher on Tuesday, 04 February 2020, as a solid showing by Chinese stock markets bolstered sentiment and saw investors buy back issues oversold following a recent rout. However, persisting worries over the economic impact from the coronavirus. Most of ASX sectors inclined, with shares in Consumer Staples and Discretionary sectors being notable gainers, while the resource sectors, utilities and telecoms were ignored by buyers. At closing bell, the benchmark S&P/ASX200 index added 25.45 points, or 0.37%, to 6,948.70, while the broader All Ordinaries rose 27.73 points, or 0.4%, to 7,047.60.

Shares of retailers were higher, with Harvey Norman (HVN) up 5.8% following several broker upgrades, inspired by improving conditions in the national property market. JB Hi-Fi (JBH) also advanced with a gain of 3.4%.

Travel related stocks have found their footing following Coronavirus inspired selling in the previous week. Webjet (WEB) rose 2.5%; (QAN) and Flight Centre (FLT) improve in the order of 2-3%. .

Bunnings landlord, BWP Trust (BWP) firmed by 0.5% after reporting a net profit for the prior six months of A$135.6 million, an increase of 72%, which included A$78.5 million of unrealised gains in the value of investment properties.

Temple & Webster (TPW) shares surged by 23% after the online furniture retailer reported that unaudited pre-tax earnings rose to A$2.3 million for the six months to December, compared to A$1 million a year ago.

Energy and mining stocks remained in sellers's cross hairs, reflecting falling commodity prices, as the coronavirus outbreak weighs on expectations for global growth. Oil prices fell almost 4% in last day ensuring relegation for oil & gas producers. Top energy firms Woodside Petroleum declined 1.2%. Origin Energy (ORG) fell 2.4%, Oil Search (OSH) dropped 2.5%. Heavyweight BHP Group shed 0.9%, while Rio Tinto fell 1%.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, jumped against the greenback, after the RBA announced it was keeping rates at 0.75 per cent. The Reserve Bank of Australia kept interest rates unchanged at 0.75 per cent at its first meeting of the year, although it is prepared to reduce interest rates further should the economy require it. The Board will continue to monitor developments carefully, including in the labour market. It remains prepared to ease monetary policy further if needed to support sustainable growth in the economy, full employment and the achievement of the inflation target over time. Ahead of the release of its latest forecasts in Friday's Statement on Monetary Policy (SoMP), the RBA flagged a return of underlying inflation to the bottom of its 2-3 per cent target band for the first time since late 2015. The Australian dollar changed hands at US67.25 from US66.90.

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