Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Australian shares end higher as govt signals ease in lending standards

Published 25/09/2020, 04:30 pm
© Reuters.
AXJO
-
ANZ
-
NCM
-
WBC
-
AXGD
-
NST
-
NZ50
-

* Benchmark index records its best week in 6

* "Big Four" banks jump; Westpac adds nearly 7%

* Gold stocks snap four day losing streak (Updates to close)

By Deepali Saxena

Sept 25(Reuters) - Australian shares ended the week on a positive note, boosted by heavyweight banks, as investors cheered the government's signals to ease lending standards to free up credit and revive the pandemic-hit economy.

The "Big Four" banks helped the S&P/ASX 200 index .AXJO close 1.5% higher. The benchmark index recorded its best weekly gain since the week ended Aug. 14.

The changes remove responsible lending laws introduced in the wake of the global financial crisis that, among other things, require banks to check whether information provided by borrowers in their loan applications is correct. the move a very good sign from banks' point of view, Henry Jennings, senior analyst and portfolio manager at Marcustoday Financial Newsletter said, "It would enable people to get a loan quicker, speed up the paperwork, free up the credit market and hopefully stimulate some economic activity."

Jumping nearly 7%, Westpac Banking Corp WBC.AX was the biggest percentage gainer among its peers with others adding between 2.8% and 6.4%.

Aiding sentiment, Fitch Ratings said the A$1.3 billion ($918.19 million) record fine agreed by Westpac to settle a lawsuit by financial crime agency AUSTRAC is manageable for the Australia's second-largest lender. other gainers, gold stocks .AXGD rallied more than 2.5% as bullion prices recovered from a two-month low. GOL/

Shares of the top listed gold miner Newcrest Mining NCM.AX advanced 2.6% while Northern Star Resources NST.AX snapped a six-day losing streak.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 gained 0.9% to end the session at 11,797.08.

Local shares of Westpac Banking Corp WBC.NZ climbed 7.7%, while Australia and New Zealand Banking Corp ANZ.NZ marked its best day in more than three months.

($1 = 1.4158 Australian dollars)

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.