Australia Market climbs to three weeks high, taking cues from Wall Street

The Australian share market finished session at three-week high on Tuesday, 11 August 2020, as investors chased for bottom fishing on tracking gains on the Wall Street overnight after U.S. President Donald Trump's executive orders to maintain assistance for unemployment benefits, temporary payroll tax deferral, and student-loan relief. Meanwhile, risk sentiment also boosted by signs of steadying employment and improving business conditions. Signs that the severe Stage 4 lockdown in Victoria is resulting in some flattening in new COVID-19 cases also seemed to help keep the market positive.

At closing bell, the benchmark S&P/ASX200 index advanced 28.45 points, or 0.47%, to 6,138.65. The broader All Ordinaries was up 25.04 points, or 0.4%, to 6,272.11.

 

Investor sentiment were up on following rallies on the Dow overnight after U.S. President Donald Trump signing executive orders to maintain assistance for unemployment benefits, temporary payroll tax deferral, and student-loan relief, among others.

Also lifting investor sentiment, data showed Australian employment was steady through July, while a measure of business conditions also improved as the service sector rebounded.

Shares of building materials giant James Hardie Industries soared on steady first-quarter earnings and forecasting a potential rise in full-year profit.

CIMIC (CIM) rose after winning two contracts for resources and water projects in Western Australia and Queensland. It anticipates the contacts to generate A$128m in revenue.

Sydney Airport (SYD) entered a trading halt after announcing a A$2bn equity easing at a ~15% discount to Monday's closing price. It intends to use the funds to pay down debt and 'strengthen its balance sheet'. SYD also posted a $53.6m loss between January and June, a 25% drop in revenue due to passenger numbers (both domestic and international) falling by more than 50% over the half.

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