Australia Market scales new highs

The Australian share market advanced on Wednesday, 22 January 2020, despite US markets closing weaker overnight on concerns from the spread of the coronavirus from Asia to the US. Market gains were broad based with nearly every sector higher, led by supermarket giants, tech, major banks and miners. Around late afternoon, the benchmark S&P/ASX200 index advanced 66.35 points, or 0.94%, to 7,132.70, while the broader All Ordinaries added 68.46 points, or 0.95%, to 7,249.

Shares of supermarket giants were higher with Woolworths (WOW) up 2% while Coles (COL) was 1.7% higher. A2 Milk (A2M) gained 2.3%.

Tech stocks were also rebounding from sharp declines yesterday with Wisetech Global (WTC) lifting 3.1%, Afterpay (APT) is also climbing 1.2%.

Shares of the major banks and miners were also higher. ANZ Bank (ANZ) and Commonwealth Bank (CBA) were both more than 0.7% higher while Fortescue Metals (FMG) rallied 3%.

Among individual stocks, Syrah Resources (SYR) has recovered 7% from a near 10% slide on Tuesday following the release of a quarterly update today. The graphite miner reported sharp fall in production over the December quarter. However, the company is on target to achieve its 20-25% cost reduction.

Santos Ltd rose 0.5% after the company posted record annual production, benefiting from higher gas output at its Western Australia assets.

Gold miner St Barbara (SBM) was 3.8% weaker as it cuts the FY20 production outlook for its Gwalia (WA) and Simberi (PNG) mines.

National Australia Bank dropped 0.6% after law firm Maurice Blackburn said it had filed a class action lawsuit on behalf of more than 330,000 account holders against two entities of the lender for alleged breaches in pension laws.

ECONOMICNEWS: Australia Westpac Consumer Confidence Dips In January- Australia's Westpac-Melbourne Institute Index of Consumer Sentiment declined 1.8 percent to 93.4 in January from 95.1 in December. Consumer confidence declined in January as devastating bushfires weighed on economic growth outlook, survey data from Westpac showed on Wednesday. All the economic components of the index namely, assessment about the economic situation over the coming year and next five years and time to buy major household items weakened in January. Nonetheless, optimism around financial markets and the global economy improved in January. The housing related components of the survey also pointed to ongoing confidence in the housing market.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, has eased further against the greenback and was buying 68.33 US cents after January monthly consumer confidence fell.

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