Australia Market rises in quiet trade

The Australian share market finished up in light year-end holiday trade after returning from Christmas and Boxing Day break on Friday, 27 December 2019, on tracking rallies on Wall Street overnight amid optimism over U.S.-Chinese trade agreement. At closing bell, the benchmark S&P/ASX200 index increased by 27.50 points, or 0.4%, to 6,821.70, while the broader All Ordinaries added 29.90 points, or 0.43%, to 6,936.30. Australia markets closed on Wednesday and Thursday for Christmas and Boxing Day public holidays.

Rising optimism around a "Phase 1" trade deal announced earlier this month between the United States and China has helped put investors in a buying mood. On Wednesday, Chinese Foreign Ministry spokesman Geng Shuang said officials from Beijing and Washington were in close communication about detailed arrangements for the deal's signing and other follow-up work. Those comments follow remarks from President Trump, who on Christmas Eve said that the deal is done, it's just being translated right now. Trump also said that he and China's leader, Xi Jinping, would hold a signing ceremony for the partial trade resolution in January. We'll be having a quicker signing because we want to get it done.

 

Technology stocks rose the most, with Nearmap up aout 2%, while Afterpay Ltd rose 5%.

Gold stocks climbed, as bullion prices surged to a near-two month high on Thursday. Gold producer Resolute Mining jumped 7%, while peer OceanaGold Corp surged 7.2%.

The utility sector slipped, with electricity and gas retailer AGL Energy declining nearly 1%.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, inclined against greenback. The Australian dollar changed hands at $0.6954 after rising from levels below $0.693 yesterday.

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