Australia Market rises to fresh 11-week high

The Australian share market finished session at highest in more than two months on Tuesday, 26 May 2020, as investors risk appetite buying fuelled by mounting hopes of a global economic recovery as more countries emerge from the coronavirus-induced lockdown. At closing bell, the benchmark S&P/ASX200 index surged 164.46 points, or 2.93%, to 6,780.05, its highest level since March 10. The broader All Ordinaries added 160 points, or 2.79%, to 5,889.93.

Market gains were supported by fresh hopes for a global economic recovery in the second half of the year as countries around the world slowly open up again and as optimism about a potential vaccine for COVID-19. Japan's Prime Minister Shinzo Abe on Monday lifted the state of emergency for the entire nation and gave his support for a huge new stimulus package. UK Prime Minister Boris Johnson on Monday announced plans to reopen all shops by the middle of June.

 

Travel stocks have surged for a second consecutive day, led by Webjet, Flight Centre, Qantas, Corporate Travel Management, and Helloworld Travel, after Treasurer Josh Frydenberg suggested on Monday the Government would consider offering further stimulus to the ailing tourism sector.

Coca-Cola Amatil's share price dropped after the beverage maker said its sales had plunged by a third in April due to COVID-19 social restrictions.

New Century Resources tumbled after the zinc miner confirmed talks to buy Vale SA's nickel and cobalt operations on the Pacific island of New Caledonia.

CURRENCY NEWS: The Australian dollar changed hands at $0.6572 after dipping from highs above $0.658 seen last week.

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