Australia Stocks gain on COVID-19 treatment drug hopes

The Australian share market climbed up on Monday, 13 July 2020, following the positive cues from Wall Street Friday as positive update from U.S. pharmaceutical company firm's Gilead's antiviral drug to treat COVID-19 helped offset worries about the surge in new coronavirus cases in infections in Victoria, the country's second most-populous state, and worldwide. Around late afternoon, the benchmark S&P/ASX200 index inclined 36.89 points, or 0.62%, to 5,956.10. The broader All Ordinaries added 30.33 points, or 0.5%, to 6,066.60.

Market sentiment improved after U.S. biopharmaceutical company Gilead Sciences Inc's said last week that its antiviral drug remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients. The Therapeutic Goods Administration had said that Australia granted provisional approval to Gilead's remdesivir as the first treatment option for COVID-19 in the country.

Also, scientists in Queensland said that a coronavirus vaccine developed by them could be ready for use as early as the start of next year, with clinical trials beginning today.

Meanwhile, the state of Victoria marked a week of triple-digit increases in fresh infections on Sunday, while a community outbreak in neighbouring New South Wales put the state on high alert.

Energy stocks gained on tracking Friday's jump in oil prices. Santos was up 3%, followed by Origin Energy gaining as much as 2.5%. Oil Search Ltd rose up despite announcing an impairment of around $380 million in its half-year results on some major exploration assets and a gas-to-power project in Papua New Guinea.

Among individual stocks, Estia Health shares dropped after it emerged from a trading halt.The company also warned investors it would record a significant A$124-148 million write-down "primarily on goodwill arising from historical acquisitions".

CURRENCY NEWS: The Australian dollar changed against greenback, with it changed hands at $0.6957 late afternoon today after turbulent trading last week that saw it swinging between levels below $0.694 to above $0.698.

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