A third straight day of gains is taking the All Ordinaries index closer to a nine year high of 6,000 points, as investors continue to react to the failure of US President Donald Trump’s healthcare reforms.
“I think we’ve just seen a return of confidence,”CMC Markets chief market analyst Ric Spooner said.
“One of the key drivers of markets in the last week or so was that a lot of people were concerned that we were going to see a sell-off when the Trump government’s healthcare initiatives failed.
“When that sell-off didn’t materialise, we’ve just seen investors left with no reason to stay out and scramble for cover.”
The benchmark S&P/ASX200 index rose 0.4 per cent on Thursday, and remains at its highest level since late April, 2015.
The All Ordinaries is also at its highest point in almost two years, at 5,932 points, and edging towards the 6,000 point level that has not been breached since May, 2008.
Mr Spooner said markets were also being boosted by decent economic growth, ongoing monetary stimulus and low interest rates. though recent rate hikes by the banks were boosting their value.
“The banks are increasing their loan rates, and expanding their margins is obviously a plus for shareholders although not necessarily for borrowers,” Mr Spooner said.
Shares in Westpac, National Australia Bank and Commonwealth Bank rose by between 0.3 per cent and 0.8 per cent, and ANZ dropped 0.1 per cent.
Bank of Queensland gained 30 cents, or 2.6 per cent, to $12.04 despite posting a two per cent fall in half year profit due to fierce competition.
BHP Billiton rose 0.4 per cent, Rio Tinto lifted 0.2 per cent and Fortescue Metals gained 0.7 per cent as iron ore prices stayed strong.
Mr Spooner said steady iron ore prices over the last few days were helping to support the Aussie dollar, which firmed to 76.57 US cents by 1700 AEDT.
Bellamy’s Australia plunged 37 cents, or 8.3 per cent, to $4.10 after the baby food and infant formula supplier said it faces delays in getting its infant formula registered for sale in China.
ON THE ASX:
* The benchmark S&P/ASX200 was up 22.7 points, or 0.39 per cent, at 5,896.2 points.
* The broader All Ordinaries index was up 21.1 points, or 0.36 per cent, at 5,931.8 points.
* The June SPI200 futures contract was up 20 points, or 0.34 per cent, at 5,880 points.
* National turnover was 2.7 billion securities traded worth $5.7 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 76.57 US cents, up from 76.10 US cents on Tuesday
* 85.14 Japanese yen, up from 84.20 yen
* 71.19 euro cents, from 70.07 Tuesday
* 61.56 British pence, up from 60.61 pence
* 109.07 New Zealand cents, up from 108.20 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,249.90 per fine ounce, up 91 US cents from $US1,248.99 per fine ounce on Wednesday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25 per cent March 2019, 1.742pct, up from 1.738pct on Tuesday
* CGS 4.25pct April 2026, 2.632pct, down from 2.642pct
Sydney Futures Exchange prices:
* June 2017 10-year bond futures contract at 97.270 (implying a yield of 2.730pct), up from 97.265 (2.735pct) on Tuesday
* June 2017 3-year bond futures contract at 98.060 (1.940pct), up from 98.050 (1.950pct)
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
