Australia Market rebounds from two-year lows

Headline indices of the Australian share market rebounded from 21-months low on Thursday, 22 November 2018, as investors chased for beaten down stocks on tracking a relief rally on Wall Street overnight. Most of ASX issues inclined, with shares in healthcare, consumer staples, energy, and materials being notable gains. In late afternoon trades, the benchmark S&P/ASX200 index added 30.13 points, or 0.5%, to 5,672.90 points, while the broader All Ordinaries index rose 30.98 points, or 0.54%, to 5,753.10 points.

U.S stocks finished higher on Wednesday. On Wall Street, the Dow Jones Industrial Average closed largely flat at 21,464.69 while the S&P 500 rose 0.3% to 2,649.93. The Nasdaq Composite also advanced 0.9% to close at 6,972.25. In economic news, jobless claims rose to 224,000 and durable goods orders fell 4.4%. U.S. financial markets are closed for Thanksgiving on Thursday.

 

Healthcare sector was top performer among ASX issues, with CSL up 2.4% to A$183.05 and Cochlear up 3.2% to A$167.84.

Shares of energy companies inclined on the back of Wednesday's bounce in crude prices. Origin Energy lifted 1.8% to A$6.75, while Woodside, Oil Search, Santos, and Caltex also edged higher.

Shares of major miners were higher after yesterday's heavy losses, with Mineral Resources (MIN) surging 23% after entering into an agreement for a potential 50:50 JV with Albermarle of the Wodgina lithium project. Albermarle would pay a purchase price of US$1.15 billion for the 50% stake. MIN has also provided FY19 Earnings (EBITDA) guidance between A$280 million and A$320 million at its AGM today.

Shares of banks and financials were higher, with ANZ rising 1.3%, Commonwealth and NAB both rose 0.8% and Westpac was up slightly.

CURRENCY: Australian Dollar was little changed against greenback and other major currencies on Thursday. The Australian dollar was quoted at 72.62 US cents, up from 72.31 cents on Wednesday.

Powered by Capital Market - Live News