Australian shares up again to close at seven-week high
The local share market has closed at its highest level in seven weeks and extended its winning streak to six straight sessions as more traders hop on board the rally.
The benchmark S&P/ASX200 index on Monday finished up 43.7 points, or 0.6 percent, to 7,294.9 – its best level since May 1.
The broader All Ordinaries gained 38 points, or 0.51 percent, to 7,489.2.
It’s the longest winning streak for the ASX since eight sessions of gains from March 27 to April 5.
“The stock market’s rally is heating up as FOMO chasers may have rushed to catch up with bulls,” CMC Markets APAC & Canada Tina Teng wrote in a note, referring to “fear of missing out”.
Artificial intelligence, a US pause on rate hikes and the possibility of the People’s Bank of China this week cutting its benchmark loan prime rates as a monetary stimulus measure is also fuelling sentiment, Ms Teng said.
Every sector of the ASX except energy and materials gained ground on Monday, with health care the biggest winner, climbing 1.9 percent as CSL recouped some of its sharp losses from last week.
The blood products giant was up 2.4 percent to $284.44 as bargain hunters swooped.
Consumer staples climbed 1.6 percent with Woolworths finishing up 2.4 percent to $39.54 and Coles and Endeavour Group both adding 1.3 percent.
All of the Big Four banks finished higher, led by ANZ, which advanced 1.5 percent to $23.62.
CBA and Westpac both added 1.2 percent, to $100.51 and $21.15, respectively, while NAB added 0.8 percent to $26.06.
Insurance companies also had a good day, with Suncorp climbing two percent and IAG and QBE finishing up 1.1 percent.
Pointsbet soared 21.6 percent to a more than one-month high of $1.66 after the betting company said it would engage with DraftKings on a surprise $US195 million ($A284m) offer the US sportsbetting giant lobbed on Friday for Pointsbets’ US business.
Pointsbet had been planning on selling off its money-losing US operations to Fanatics Betting and Gaming for $US150m ($A222m), but is now prepared to offer an inside look at its financials to DraftKings to facilitate a due diligence process, the company said.
Abacus Property Group gained 5.8 percent to $2.73 after successfully completing a $225m equity raising to spin off its self-storage property assets into an ASX-listed real estate equity trust to be known as Abacus Storage King.
The heavyweight mining sector finished down 0.6 percent, with BHP dipping 0.7 percent to $46.10, Fortescue retreating 0.8 percent to $22.33, and Rio Tinto down 1.2 percent to $116.63.
Lithium developer Lake Resources plunged 20 percent to a two-year low of 38c announcing it would take a two-stage approach to construct its flagship Kachi lithium mine in Argentina that would not see it producing battery-grade lithium carbonate until 2027.
The Australian dollar was buying 68.54 US cents, from 68.83 US cents at Friday’s ASX close.
Looking forward, Wall Street markets will be closed overnight for the Juneteenth holiday.
Minutes from the Reserve Bank’s last meeting will be released on Tuesday. Overseas, US Federal Reserve chairman Jerome Powell will give his semi-annual testimony before Congress early on Thursday and Friday, Australian time.
In the UK, the Bank of England is widely expected to raise interest rates on Thursday.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 43.7 points, or 0.6 percent, at 7,294.9.
* The broader All Ordinaries gained 38 points, or 0.51 percent, to 7,489.2.
Source: https://www.sheppnews.com.au/aap-finance/australian-shares-up-again-to-close-at-seven-week-high/