Tech stocks lift market: Aus shares gain 2.5% over week

Market Reports

by Katrina Bullock

The Australian share market opened higher this morning following positive leads from offshore markets. It fell mid-session and tracked sideways for most of the afternoon to close 0.4 per cent higher. Most of the sectors made ground today, with Healthcare and Communications managing to edge over 2 per cent higher.

At the closing bell the S&P/ASX 200 index closed 25 points higher to finish at 6,058.

Over the week, the market has gained 154 points or 2.5 per cent. Every sector made ground this week. Info Tech rose over 7 per cent this week as investors flocked to the covid resilient sector. Communications followed gaining almost 6 per cent over the week.

Futures market

Dow futures are suggesting a rise of 12 points.
S&P 500 futures are eyeing a rise of 0.3 points.
The Nasdaq futures are eyeing a lift of 10 points.
And the ASX200 futures are eyeing a 14 point rise Monday morning.

Economic news

According to the latest Australian Bureau of Statistics retail trade figures, Australian retail turnover jumped 16.9 per cent in May (seasonally adjusted). A welcome reprive after a 17.7 per cent decline in April.

Company news

Morgan Stanley rates Galaxy Resources (ASX:GXY) as underweight with a 12 month price target of 70 cents. The broker expects short-term weakness in the lithium market and is also concerned about Galaxy Resources’ mine life at Mt Cattlin. Shares in Galaxy Resources (ASX:GXY) closed 1.2 per cent lower at 81 cents.

The board of Australia's largest listed wind farm operator, Infigen Energy (ASX:IFN), unanimously recommends that investors accept the takeover offer lobbed by Iberdrola Renewables Australia.

Cockburn Cement, which is a subsidiary of Adbri (ASX:ABC) has been informed by Alcoa of Australia that the company has elected not to renew its current lime supply contract. The current expires on 30 June 2021 and was worth around $70 million in annual revenue for the group.

Worley (ASX:WOR) has been awarded a services contract from BASF. The contract is for engineering, procurement and construction management services needed to assist the BASF’s European battery material investment project in Finland.

Medical cannabis supplier, Cann Group (ASX:CAN) has been awarded a grant for up to $1.975 million under the Regional Jobs Fund established by the Victorian Government.

Wall Street

Wrapped up our four trading days this week higher: The Dow Jones added 3.1 per cent, The S&P 500 added 3.9 per cent and the tech heavy Nasdaq gained 4.4 per cent.

Best and worst performers

The best-performing sector was Communication Services, rising 2.6 per cent, while the worst-performing sector was Real Estate Investment Trusts, shedding 1 per cent.

The best-performing stock on the S&P/ASX 200 was Cochlear (ASX:COH), closing 5.9 per cent higher at $204. It was followed by shares in Bega Cheese (ASX:BGA) and Wisetech Global (ASX:WTC).

The worst-performing stock on the S&P/ASX 200 was Adbri (ASX:ABC), closing 25.4 per cent lower at $2.35. It was followed by shares in IDP Education (ASX:IEL) and Netwealth Group (ASX:NWL).

Asian markets

Japan's Nikkei has gained 0.5 per cent. Hong Kong's Hang Seng has gained 0.9 per cent. The Shanghai Composite has gained 1.3 per cent.

Commodies and the dollar

Gold is trading at US$1774.
The iron ore price is 0.3 per cent higher at US$99.47.
Its futures are pointing to a rise of 0.6 per cent.
Light crude is trading $0.38 lower at US$40.38.
One Australian dollar is buying 69.32 US cents.