Australia Market surges on trade optimism

Headline indices of the Australian financial market closed higher on Monday, 25 February 2019, as investor sentiments bolstered amid trade optimism after US President Donald Trump's announced delay to the planned increase in tariffs on Chinese imports. At losing bell, the benchmark S&P/ASX200 index advanced 19.01 points, or 0.31%, at 6,186.32 points, while the broader All Ordinaries was up 21.69 points, or 0.35%, at 6,263.57.

Markets globally took note of Trump's latest announcement, adding to earlier gains at the end of last week on signs of progress in trade talks between the United States and China. Mr Trump on Sunday tweeted that there was "substantial progress" in trade talks and he would push back the March 1 deadline for higher tariffs, and looked forward to a meeting with Chinese President Xi Jinping to seal a deal.

 

Shares of major materials and resources were higher, as trade optimism supported commodity prices on Friday, with copper touching its highest since last July. Top iron ore miners, BHP Group, Rio Tinto and Fortescue Metals Group were all higher, rising between 0.5% and 2.3%. BlueScope jumped 6.3%, after reporting it had lifted first-half profit by 42% to $624.3 million.

The banking sector was under pressure all day after Labor announced it would impose a $640 million levy on the nation's largest banks. But the sector surged in the last minutes of trading to finish higher, with three of the four big banks up slightly - all except Commonwealth, which was down 0.12%.

Among individual stocks, Brambles rose 2.8% after the pallets and container company announced the US$2.5 billion dollar sale of a unit, and earmarked most of the proceeds for a share buyback.

QBE Insurance advanced 4.2%, after its annual profit beat expectations, despite larger rivals Insurance Group Australia and Suncorp Group reporting lower interim profits.

Afterpay Touch surged 19.2% after the buy now, pay later lender said a Senate committee's recommendations to reform the industry wouldn't hurt its business.

GTN surged 19.5%, after the broadcast media advertising platform announced it would spend up to $20 million on a stock buy-back to prop up its depressed share price.

Boral was down 1.2% after the building materials supplier blamed heavy rain in the US and Australia for a 6.4% fall in first-half profit.

G8 Education was down 11 % after Australia's largest childcare and early education provider reported full-year profit fell 11%.

CURRENCY: The Australian dollar rose against the U.S. dollar on Monday. The Aussie currency was quoted at 71.48 US cents, up from 70.96 US cents on Friday.

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