Don’t miss the latest developments in business and finance.

Australia Market surges after stimulus package

Image
Capital Market
Last Updated : Mar 30 2020 | 6:04 PM IST
The Australian share market finished session sharp higher after swinging between gains and losses on Monday, 30 March 2020, as risk appetite buying underpinned late afternoon after Prime Minister Scott Morrison unveiled stimulus packages of A$130 billion to help save jobs as shockwaves from the virus pandemic rip through the economy. Gains were across the board with every sector improving led by banks, consumer facing and health names. At closing bell, the benchmark S&P/ASX200 index advanced 338.95 points, or 7%, to 5,181.38. The broader All Ordinaries rose 319.80 points, or 6.56%, to 5,193.95.

Shares of the financial players inclined, with the country's so-called Big Four banks led rally. Australia and New Zealand Banking Group added 8.5%, Commonwealth Bank of Australia rose 10.9%, Westpac advanced 8.5%, and National Australia Bank gained 7.9%.

Bank of Queensland (BOQ) and QBE Insurance (QBE) were two companies that did announce that FY20 guidance had been withdraw due to Covid-19. BOQ gained 5.6% while QBE was 6.7% higher. Department store, Myer (MYR) announced late Friday that it was closing all its stores for 4 weeks due to Covid-19 which will place roughly 10,000 employees out of work for that period. Still, MYR shares rose 9.5%.

Health insurer, NIB Insurance (NHF) stated that it would not go ahead with its planned annual premium increase on April 1, rather it will push it back by 6 months until at least October 1. Premiums were going to increase by an average of 2.9%. NHF shares rose 6%. Nine Entertainment (NEC) rallied 11.7% as the media company confirmed that March quarter revenue was in line with guidance, although a material negative impact would be likely for ad revenue. NEC is looking to save over A$260 million for calendar year 2020 which includes A$130 million in savings if the NRL season is cancelled.

CURRENCY: The Australian dollar changed hands at $0.6132 after rising from levels below $0.60 in the previous week.

Powered by Capital Market - Live News

Also Read

First Published: Mar 30 2020 | 5:43 PM IST

Next Story