Australia Market rises to record high after RBA dovish minutes

The Australian share market finished session at fresh record high and the third straight day of gains on Tuesday, 15 June 2021, after minutes from the Reserve Bank of Australia's board meeting signalled a continuation of its accommodative stance.

At closing bell, the benchmark S&P/ASX200 advanced 67.17 points, or 0.92%, to 7,379.50, a record high. The broader All Ordinaries rose 55.76 points, or 0.74%, to 7,633. Australia share market closed on Monday, 14 June 2021, in observance of the Queen's Birthday holiday.

Total 10 of 11 S&P/ASX200 sectors ended higher, with the best performing sectors was healthcare (up 1.96%), followed by information technology (up 1.6%), consumer staples (up 1.47%), consumer discretionary (up 1.42%), financials (up 1.3%), and telecommunication services (up 0.54%) sectors.

The best performing stocks in the S&P/ASX200 were Resmed Inc (up 6.84%), The A2 Milk Company (up 5.42%), Iluka Resources (up 5%), Premier Investment (up 4.5%), and Nuix (up 4.2%), while the worst performing stocks were Austal (down 9%), Pointsbet Holdings (down 6.5%), Nickel Mines (down 4.2%), Downer EDI (down 3.5%), and Costa Group Holdings (down 3.5%).

Nuix (NXL) finished up 4.2% after both the Chief Executive and Chief Financial Officer announced their decisions to leave the software company. CEO Rod Vawdrey will remain in his role while an international search for a replacement is conducted.

Japara Healthcare (JHC) gained 8.1% after receiving a second takeover offer in a week. RSL Carepart of not-for-profit Boston Clarkehas put A$1.22 per share on the table for the aged care provider. This is a touch higher than the $1.20 offer made from Little Company of Mary Health Care last week.

Austal (ASB) fell 9% after reducing its profit and revenue goals for the year (FY21) due to delays and higher costs associated with COVID-19. The shipbuilder is also being taken to court by ASIC

ECONOMIC NEWS: Members of the Reserve Bank of Australia's monetary policy board said the country's economic recovery is continuing at a solid pace with an upbeat outlook, minutes from the central bank's June 1 meeting revealed on Tuesday. At the meeting, Australia's central bank left its key interest rate at a record low of 0.10 percent and the government bond yield target unchanged. CURRENCY NEWS: The Australian dollar changed hands at $0.7702, off levels above $0.774 seen last week.

Powered by Capital Market - Live News