Australia Market bounces on bargain hunting

The Australian shares bounced back aggressively on Wednesday, 23 September 2020, with major indexes snapping four days of losing streak, on tracking firm lead from Wall Street overnight after Fed Chair Jerome Powell said the U.S. central bank is committed to helping the economy. Optimism was further stoked by improved coronavirus indicators in NSW and Victoria, and market talks that the Reserve Bank will cut interest rates to 0.1% next month.

At closing bell, the benchmark S&P/ASX200 index surged 139.86 points, or 2.42%, to 5,923.93. The broader All Ordinaries spurted 137.86 points, or 2.31%, to 6,111.33.

Locally, the trend of newly identified COVID-19 cases has been promising, with Victoria recording just 15 new cases and just six in NSW (no locally acquired cases identified in NSW).

Gains were widespread on Wednesday, with every sector and 91% of stocks finishing higher. Industrials rose by 4% and were the best performers. Sydney Airport (SYD), Transurban (TCL), Auckland International Airport (AIA) and Qantas (QAN) all improved strongly. Consumer Discretionary, Consumer Staples, Healthcare and Utilities all rose by around 3%.

The big four banks rallied 2-3% amid predictions of an RBI interest rate easing next month. Healthcare stocks advanced, with CSL and Cochlear rising nearly 4% each. Woodside Petroleum, Santos, Oil Search and Origin Energy rose 1-2% after crude oil prices rebounded overnight. In the tech sector, Afterpay climbed 2.9% and Appen advanced 1.9%.

CURRENCY NEWS: The Australian dollar changed hands at $0.7118, having weakened from levels above $0.725 this week.

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