🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Financials, tech stocks drive Australian market higher

Published 13/10/2020, 04:55 pm
© Reuters.
AXJO
-
ANZ
-
AAPL
-
AMZN
-
TLS
-
AXMM
-
AXFJ
-
AXIJ
-
AXTJ
-
NZ50
-
INR
-
WAF
-

* Communication services sector boosted by Telstra

* Miners fall on reports China halted coal imports

* New Zealand rises to record close, up 0.8% (Updates to close)

By Nikhil Subba

Oct 13 (Reuters) - Australian shares settled higher on Tuesday for the seventh straight session, as financials jumped on some economic optimism and dividend hopes, and technology stocks tracked Wall Street higher.

The S&P/ASX 200 index .AXJO rose 1% to 6,195.70, adding about 7% during the seven sessions of gains through Tuesday.

Financials .AXFJ closed 1.7% higher, after having hit their highest level since Aug. 12 earlier in the session, with the "Big Four" banks adding between 1.7% and 3.3%.

"There are some signs that there is a bit of optimism for the economy moving forward, and that's helping banks have a pretty good run," said James Tao, a market analyst at CommSec.

Last week, the Australian government pledged billions in tax cuts and measures to boost jobs, which was quite accommodative for the economy. eased lending standards for banks have also brightened growth prospects for the economy, which slid into recession for the first time in nearly 30 years due to the COVID-19 pandemic.

"Banks are still tempting for punters who believe dividends will come back," said Brad Smoling, managing director at Smoling Stockbroking.

Technology stocks .AXIJ tracked a rally in their U.S. peers, particularly in Apple Inc AAPL.O and Amazon.com AMZN.O , and rose 1.6% to a record.

The communication services sector .AXTJ closed 2.4% higher, boosted by Telstra Corp's TLS.AX more than 4% gain after the telecom company retained its annual dividend.

Limiting gains, the mining sector .AXMM slipped 0.3%, mostly dragged by coal companies following reports that China has stopped taking Australian coal shipments. African Resources Ltd WAF.AX was the top loser with a drop of 10.74%, while Ioneer Ltd INR.AX shed 4.88%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 gained 0.79% to a record close of 12,453.9.

New Zealand-listed shares of Australia and New Zealand Banking Group Ltd ANZ.NZ were the top gainers, up 3.63%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.