Banks lead the advance in catch-up rally: ASX closed 1.8% higher

Market Reports

by Rachael Jones

It has been a positive day of trade for the Australian share market after a rise at the open the local bourse managed to gain momentum closing 1.8 per cent higher. Banks blostered the market today following GDP and building approvals data from the ABS earlier today. Shares in SkyCity (ASX:SKC) rose as they announced they expect total annualised cost savings of around NZ$50 million.

The S&P/ASX200 index

At the closing bell the S&P/ASX 200 index closed 107 points higher to finish at 5,942.

Futures market

Dow futures are suggesting a rise of 154 points.
S&P 500 futures are eyeing a rise of 10 points.
The Nasdaq futures are eyeing a lift of 23 points.
And the ASX200 futures are eyeing a 109 point rise tomorrow morning.

Local economic news

The Australian Gross Domestic Product fell 0.3 per cent in seasonally adjusted, chain volume terms in the March quarter 2020 and growth slowed to 1.4 per cent through the year, according to figures released by the Australian Bureau of Statistics (ABS) today.

The number of dwellings approved rose 1.0 per cent in April, in trend terms.

Company news

Ingenia Communities Group (ASX:INA) has increased its Security Purchase Plan (SPP) offer to $28 million, above the original target of $25 million. Approximately 8.1 million new fully paid securities will be issued to successful applicants on Wednesday 10 June 2020 at an issue price of $3.45 per security. Shares in Ingenia Communities Group (ASX:INA) closed 2.8 per cent higher at $4.40.

Perseus Mining (ASX:PRU) will acquire junior Exore Resources in a $64 million all scrip deal. The acquisition will see the $1.6 billion Perseus take control of Exore's Bagoe project in the Ivory Coast.

Air New Zealand (ASX:AIZ) carried a total of 15 passengers in April, 98.9 per cent fewer than usual. The airline has already implemented a number of actions including labour reductions of approximately 30 per cent, or 4,000 employees, which is expected to drive annualised savings of $350 to $400 million.

Best and worst performers of the day

The best performing sector was Financials adding 3.5 per cent while the worst performing sector was Healthcare, shedding 0.1 per cent.

The best performing stock in the S&P/ASX 200 was Pilbara (ASX:SDA), rising 13.5 per cent to close at $0.29. Shares in S (ASX:SGM) and Ooh!Media (ASX:OML) followed higher.

The worst performing stock in the S&P/ASX 200 was Bega Cheese (ASX:BGA), dropping 8.4 per cent to close at $2.06. Shares in Resolute Mining (ASX:RSG) and GWA Group (ASX:GWA) followed lower.

Asian markets

Higher: Japan’s Nikkei is flat Hong Kong’s Hang Seng has added 1.3 per cent and the Shanghai Composite has added 0.4 per cent.

Commodities and the dollar

Gold is trading at US$1,723 an ounce.
Iron ore price is 0.9 per cent higher at US$101.32
Iron ore futures are pointing to a rise of 0.5 per cent.
Light crude is US$0.99 up at US$38.34 a barrel.
One Australian dollar is buying 69.36 US cents.