Australia Market rises on ending coronavirus restrictions hopes

The Australian share market finished session higher on Friday, 08 May 2020, as risk sentiment improved on tracking rallies on Wall Street overnight and news that Australia has a plan to emerge from coronavirus shutdowns. Most of ASX sectors inclined, with shares in the Financials and Consumer Discretionary issues being notable gainers. At closing bell, the benchmark S&P/ASX200 index advanced 26.38 points, or 0.5%, to 5,391.08. The broader All Ordinaries added by 38.13 points, or 0.7%, to 5,487.99.

The Australian share market got a boost on hopes for an economic recovery at home after the government unveiled plans to end most coronavirus restrictions by July. Prime Minister Scott Morrison's announced a plan to ease social distancing restrictions in a three-step process, which would remove all curbs by July and get nearly 1 million people back to work amid a decline in coronavirus cases.

 

Retail stocks were up, fuelled by an increase in confidence and certainty following the government's announcement of a three-point plan for ending pandemic shutdowns, with the first stage looking at an opening up of retailers, restaurants and cafes. Department store Myer rose 45% and electronics retail Harvey Norman added 6.7%.

The financials sector also pulled up the market higher, clawing back some losses from earlier in the week. These gains were driven by Macquarie Group, which ended the day 5.7% ahead, and AMP, which gained 3.3%.

Real estate companies also gained. Vicinity was up 5.2% and Westfield owner Scentre ended up 3.7%.

Mining stocks were up as Chinese iron ore prices scaled a nine-month peak. Fortescue Metals Group Ltd, the world's no.4 iron ore miner, jumped 5.5%.

CURRENCY NEWS: The Australian dollar changed hands at $0.6532 after rising sharply from levels below $0.642 yesterday.

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