Australia Market gains for a second successive session

The Australian share market stretched gains on Wednesday, 05 February 2020, receiving support from an extended rally on Wall Street overnight. At closing bell, the benchmark S&P/ASX200 index added 27.35 points, or 0.39%, to 6,976.05, while the broader All Ordinaries rose 33.34 points, or 0.47%, to 7,080.94.

Investor appetite was whetted by the Chinese government's active posture to hammer out economic measures and continued ample liquidation injections by the People's Bank of China to fend off adverse effects of the spreading outbreak of a novel coronavirus. But selling pressure built up toward the closing amid persistent fears over the unabated coronavirus epidemic.

 

Shares of large cap mining and health companies advanced. BHP Group (BHP) rallied 1.5%, as the iron ore price rebounded with a gain of 4% in overnight trade, and CSL Ltd (CSL) rose 0.7%.

Meanwhile the IT sector was the best performing sector as logistics software firm Wisetech Global jumped 9% and Technology One (TNE) surged 6.2%.

Smaller lithium miners were some of the most improved stocks on the back of the recent pick up in sales and demand for Tesla electric cars, where the batteries are lithium based. Pilbara Minerals (PLS) jumped 11% while Galaxy Resources (GXY) soared 17.7% and Orocobre (ORE) surged 19%.

CURRENCY NEWS: The Aussie dollar remains near the best levels of the week buying 67.37 US cents after further upbeat comments at a speech by the RBA governor.

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