ASX takes a giant leap over the 7,000 threshold

January 16, 2020 - 1 month ago
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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 last night.

“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.

The refreshing news called ‘out to the bulls’ as fresh records on our market was posted.

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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