Australia Market closes at record high

Headline indices of the Australia share market closed at fresh all time high on Thursday, 25 July 2019, as investors risk sentiments underpinned by cocktail of ultra-low interest rates, high iron ore prices and a stabilising housing market. At closing bell, the benchmark S&P/ASX200 index inclined 41.35 points, or 0.61%, to 6,818.03, its record closing high. Meanwhile the broader All Ordinaries index, which tracks the nation's 500 biggest listed companies, added 39.47 points, or 0.58%, to end the session at 6901.85, the highest level it ever touched.

Shares of financial and realty sectors were a standout performer, after Reserve Bank governor Philip Lowe said interest rates would remain low for an "extended period", with the "Big Four" lenders adding between 0.8% and 1.7%. National Australia Bank ended up 1% to its highest level since August 2018. Australian banks have been concerned about their margins after two rate cuts by the Reserve Bank of Australia this year, and with more expected going ahead, but lower US rates will alleviate some of the pressure by enabling them to borrow US dollars more cheaply.

Shares of export-reliant health stocks advanced as the Australian dollar eased after Lowe's speech. Drug maker CSL gained 2.1% and medical devices developer Cochlear rose 1.5%.

Energy firms rallied for a fifth straight session, as oil prices edged higher amid lingering Middle East tensions. Woodside Petroleum was up 0.2% and Caltex Australia gained 0.3%.

Shares of metals and mining companies retreated as iron ore prices extended declines on Thursday, after Brazil's Vale SA won approval to resume some processing operations which were halted over concerns about the stability of its dams. Miners of the steel making material, BHP Group and Rio Tinto dropped 2.4% and 4.3%, respectively, while Fortescue Metals Group fell 5.4%.

CURRENCY NEWS: The Australian dollar changed hands at $0.6967, slipping from levels above $0.699 yesterday.

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