UK election boosts the Australian market: ASX closed 0.5% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market the local bourse managed to close 0.5 per cent higher. Stocks with significant UK businesses enjoyed gains such as Virgin Money UK (ASX:VUK) after exit polls in the UK election point to a Boris Johnson majority. Shares in Polynovo (ASX:PNV) are up after receiving a CE mark for Europe. As for the sectors today Infotech led the day and REITS fell lower.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 31points higher to finish at 6,740.

Ove the week we closed 0.5 per cent higher or 33 points higher.

Futures market

Dow futures are suggesting a rise of 1116 points.
S&P 500 futures are eyeing a rise of 13 points.
The Nasdaq futures are eyeing a lift of 47 points.
And the ASX200 futures are eyeing a 40 point rise for Monday morning.

Company news

Adairs (ASX:ADH) has today completed its acquisition of Mocka. Mocka is an online furniture store based in Christchurch, NZ and Brisbane, Australia. The business was formed in May 2007 with products including nursery furniture, and a large range of home furniture. On 4 December 2019 Adairs announced that it had entered into a binding agreement to acquire all of the shares of Mocka for a notional initial enterprise value of $75.5 million. Shares in Adairs (ASX:ADH) closed flat at $2.35.

Infrastructure investment company, Infratil (ASX:IFT), has reduced its full year underlying EBITDAF from continuing operations by $74 million as a result of the sale of Snowtown 2.
Infratil (ASX:IFT) owns a 65 per cent stake in Tilt Renewables which recently penned a deal to sell its Snowtown 2 wind farm for over $1.07 billion.

Medical device company PolyNovo (ASX:PNV) is thrilled NovoSorb BTM has been granted a certificate of conformance, that’s a CE Mark, approval for sale throughout UK/Ireland and the European Union.

An independent valuation of Dexus' (ASX:DXS) properties has seen the real estate investor report a $656 million uplift in the value of its portfolio seeing their shares fall slightly.

Best and worst performers 

The best performing sector was Infotech adding 1.5 per cent while the worst performing sector was Real Estate Investment Fund, shedding 2.2 per cent.

The best performing stock in the S&P/ASX 200 was Polynovo (ASX:PNV), rising 11.8 per cent to close at $1.94. Shares in Galaxy Resources (ASX:GXY) and Lynas Corp (ASX:LYC) followed higher.

The worst performing stock in the S&P/ASX 200 was Silver Lake Resources (ASX:SLR), dropping 9.2 per cent to close at $1.14. Shares in Evolution Mining (ASX:EVN) and Gold Road Resources (ASX:GOR) followed lower.

Asian markets

Higher: Japan’s Nikkei has added 2.5 per cent, Hong Kong’s Hang Seng has added 2 per cent and the Shanghai Composite has added 1.2 per cent.

US Indices over the week Dow Jones has gained 0.4 per cent, S&P has gained 0.7 per cent and NASDAQ has also gained 0.7 per cent

Commodities and the dollar

Gold is trading at US$1,468 an ounce.
Iron ore price is 0.7 per cent lower at US$94.02
Iron ore futures are pointing to a rise of 0.2 per cent.
Light crude is US$0.05 up at US$59.11 a barrel.
One Australian dollar is buying 69.22 US cents.