Australia Market gains on bargain hunting

The Australian share market finished session modestly higher on Monday, 01 November 2021, as investors chased for bottom fishing after losses in the previous two sessions, with positive cues from Wall Street on Friday and the Australian government easing curbs on international travel further aided risk sentiments.

However, market gains capped after latest economic data showed a mixed picture of Chinese manufacturing activity in October and on caution ahead of the Reserve Bank of Australia's monthly policy meeting on Tuesday.

At closing bell, the benchmark S&P/ASX200 advanced 47.04 points, or 0.64%, to 7,370.78. The broader All Ordinaries index rose 53.09 points, or 0.69%, to 7,692.16.

Total 7 of 11 sectors ended lower. The consumer staple was session's worst performing sector, falling 4%, followed by materials (down 2.9%), energy (down 2.8%), utilities (down 2.6%), and real estate (down 2.2%). Healthcare was the best performing sector, gaining 2.8%.

The top performing stocks in this index were OROCOBRE and BLACKMORES, up 5.8% and 5.5% respectively. The bottom performing stocks in this index were WESTPAC BANKING CORP and RESMED INC, down 7.4% and 4.9% respectively.

Seven West Media shares rose by 14.3% after announcing its acquisition of Prime Media (PRT) for $121.9m. PRT shares surged 73.9% as the offer was 57% premium to its Friday closing price. PRT offers free-to-air television broadcasting services under PRIME7 brands in regional areas. SWM said the deal provides advertisers a single platform to reach their audience.

Shares of Westpac Banking Corp was down 7.4%, after handing down its full year results. Cash earnings rose by 105% to $5.4bn for the year, flagged a $3.5bn off-market buyback of shares and a 60-cent final dividend (close to twice the 31-cent payment made 12 months ago). However, the second half of the year was more challenging, with a lift in costs and worsening margins.

ResMed shares slumped 4.9% on profit taking, followed a 4% lift on Friday after handing down a 20% improvement in quarterly sales thanks to its sleep apnea mask sales.

ECONOMIC NEWS: Australia New Home Loans Down 2.7% On Month In September- Australia total value of owner-occupied home loans was down a seasonally adjusted 2.7% on month in September, the Australian Bureau of Statistics said on Monday, coming in at A$20.69 billion, following the 6.6% plunge in August. Investment lending was up 1.4% on month at A$9.62 billion and overall home loans fell 1.4% on month to A$30.31 billion. On a yearly basis, owner-occupied home loans gained 20.8%, while investment lending skyrocketed 83.2% and overall home loans jumped 35.5%.

CURRENCY NEWS: The Australian dollar changed hands at $0.7511, following a decline from above $0.753 late last week.

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