Australia Stocks hit new 11-month highs

The Australian share market finished session at new 11-month highs on Monday, 08 February 2021, inline with strengthening global risk sentiment after progress around U.S. stimulus talks to deal with the impact of the coronavirus pandemic.

At closing bell, the benchmark S&P/ASX200 advanced 40.15 points, or 0.59%, to 6,880.68. The broader All Ordinaries added 47.85 points, or 0.67%, to 7,160.78.

The Australian share market commenced trading with firm footing on tracking last week's gains on Wall Street after the U.S. House of Representatives gave final approval to a budget plan that included President Joe Biden's $1.9 trillion coronavirus relief package. Further adding strength to market was comments by the U.S. Treasury Secretary Janet Yellen that the United States would hit full employment next year if Congress could pass its support package.

The majority of the market advanced with cyclical sectors outperforming. Technology, materials and consumer discretionary were among the biggest movers higher. More defensive sectors on the market underperformed for the day with utilities, property, and industrials all in the red.

Shares of materials and resources were higher, thanks to higher iron ore prices on positive demand outlook for the steelmaking ingredient in the world's top steel producer China. Among miners, global miners BHP Group and Rio Tinto gained 2.4% and 3.4%, respectively.

Tech stocks advanced, with buy-now-pay-later company Afterpay rising 1.4%, and property advertisement website REA Group up 3.2%.

Energy stocks were also higher, helped by a rise in oil prices as supply cuts among key producers and hopes for further U.S. economic stimulus measures helped. Oil & gas explorers Woodside Petroleum and Santos were up 0.6% and 1.9%, respectively.

Sigma Healthcare (SIG) added 7.3% as the wholesaler and distributor of pharmaceutical goods in Australia provided a trading update, expecting FY21 underlying earnings (EBITDA) to increase by over 35% on the year before with guidance around $80 million.

CURRENCY NEWS: The Australian dollar changed hands at $0.7675 following a spike last last week from levels below 0.762.

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