ASX bulls run HOT after cracking the 7,000-point and set a record high

January 17, 2020 - 1 month ago
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The Australian share market is expected to continue its eleven-day bullish streak on the opening bell, with the benchmark ASX 200 trekking further into uncharted territory, after cracking the 7,000-point mark on Thursday.

The ASX bulls were unleashed on Thursday following the surge on Wall Street performance triggered by developments in the U.S. and China trade war.

From endless Tweets to rounds of renegotiations and escalating tariffs, the 18-month trade saga between the world’s two largest economies finally signed the so-called “Phase-One” trade deal on Wednesday.

“Today we take a momentous step, one that has never been taken before with China,” Trump said before inking the agreement with Chinese Vice Premier Liu He in the White House’s East Room.

At the overnight’s close, the ASX futures rose +26 points or +0.4% to 7,015.

Looking ahead, Rio Tinto’s quarterly production report is to be released at 8.30 am (AEDT), while BHP will release its report on January 21.

Daily outlook on the benchmark S&P/ASX 200

The benchmark S&P/ASX 200 index smashed past the 7,000-point level for the first time and surged +47 points, or +0.67%, to finish at 7,041.8 points, setting a fresh record for a third straight day, out of the eleven-day rally.

The broader All Ordinaries gained +45.1 points, or +0.63%, to similarly set a record high of 7,158.6.

So far, the S&P/ASX 200 is up an impressive +5.4% this year, after gaining +18.4% in all of 2019.

Biopharmaceutical company CSL cracked the $300-per-share mark on Thursday, finishing up +1.1% to $300.89 after Credit Suisse raised its price target on Australia’s third-largest company to $320.

The technology sector was the other top performer today. Eight of the sector’s 10 biggest companies by market cap closed green, led by WiseTech’s healthy +4.07% gain, while Xero rose +1.93%, Computershare gained +0.96%, and Afterpay rose +1.34%.

Insurance companies also shined, with QBE climbing +3.4%, Suncorp gained +1.4%, and IAG advanced +1.5%.

The finance lights flashed green as the “Fab Four” (banks) advanced with the Commonwealth climbing +1.0% to $84.46, while the NAB rose +0.8% to $25.36, with Westpac climbing +0.9% to $24.90 and the ANZ chalked up a gain of +0.7% to $25.42.

Investment banking giant Macquarie increased for its third session in a row. The company gained +1.39% and posted a new all-time-high share price.

The mining sector was muted, rising +0.1% as Titans, BHP slipped -0.1% to $40.13, with Rio Tinto climbing ending flat at $103.40, along with South32 (also flat) at $2.85. Newcrest and Fortescue gained a respective +1.02% and +1.38%.

Woodside Petroleum helped prop up the energy sector, rising +0.6% to $36 after announcing that oil production was up three per cent in the December quarter.

Supermarket giants Woolworths gained +0.97%, and Coles rose +1.54%, while Retail conglomerate Wesfarmers gained +0.73%.

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