Australia Market rises to highest level in a month

The Australian share market finished session at highest level in a month on Tuesday, 14 April 2020, as investors risk appetite buying continued on beaten down industries after trading resumed for the first time after the Good Friday and Easter Monday holidays. Meanwhile, upbeat prints of China trade numbers for March and hopes that coronavirus (COVID-19) is near to the peak also pleased the share buyers. At closing bell, the benchmark S&P/ASX200 index advanced 100.79 points, or 1.87%, to 5,488.11. The broader All Ordinaries grew 103.06 points, or 1.89%, to 5,542.46.

Stocks were helped by better-than-expected trade data for March from Chinese customs officials. China's exports were down 6.6% in dollar terms in March compared with a year ago, the General Administration of Customs announced on Tuesday. That was considerably better than the expected 14% drop. In another promising sign, China's imports fell 0.9% in March from a year earlier, much better than the expected decline of 9.5%. That appeared to indicate that Chinese factories were loading up on materials to process as their overseas competitors began to shut down because of the coronavirus pandemic. The modest fall in imports was also striking because China the world's largest importer of oil, iron ore and other raw materials has been the biggest winner from recent plunges in global oil prices.

For the moment, sentiment continues to be driven by hopes for a quick recovery from coronavirus disruptions, along with unprecedented fiscal and monetary support measures rolled around the world.

Some of the best performers included media, retail and tech names. While heavyweights such as materials and financials also added weight to advances.

Media stocks such as Southern Cross Media (SXL) which owns radio (Hit Network & Triple M) and regional television stations soared 27% SXL raised close to $170 million last week and is still ~70% weaker in 2020. Seven West Media (SWM) also jumped 33%.

Retailers were led by a 29% increase for jeweller Michael Hill (MHJ). Kathmandu (KMD) also lifted 13.8%. Flight Centre (FLT) gained 15% with another travel business Corporate Travel (CTD) closing 21% higher.

There is still appetite for defensive names with gold stocks also in demand. Gold miners such as Newcrest, Norther Star Resources and Evolution Mining surged in between 9-14% after gold prices hit over seven-year highs on fears of a coronavirus blow to the global economy.

Energy stocks ended on a mixed note despite a record output-cut deal by the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia.

Virgin Australia's stock was placed on a trading halt pending an announcement as the airline deals with the economic fallout of the coronavirus pandemic.

Afterpay shares jumped as much as 29%, as the buy now, pay later platform said the coronavirus crisis hasn't hampered its strong growth and it has no need to raise more money in the foreseeable future.

In economic news front, a measure of Australia's business confidence declined sharply to -66 in March from -2 in February, survey data showed. This was the biggest fall on record and reached its lowest level since the series started. The business conditions index plunged to -21 from zero in February.

CURRENCY NEWS: The Aussie dollar has managed to hold above 64 US cents on strength for commodity currencies, following some better than expected Chinese trade data for March. This overcame the record drop in local business confidence and conditions for March as surveyed by NAB.

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