Australia Stocks scale fresh nine-month high

The Australian share market finished higher for fifth straight session on Monday, 07 December 2020, as sentiments for riskier assets underpinned on following a positive lead from Wall Street, a jump in the iron ore price in addition to all the recent coronavirus vaccine related drivers.

At closing bell, the benchmark S&P/ASX200 inclined 40.94 points, or 0.62%, to 6,675.02, its highest since 27 Feb. 2020. The broader All Ordinaries added 43.62 points, or 0.64%, to 6,908.91.

Mining stocks gained, with Iron ore miners being the best performers, thanks to a 5.4 per cent surge in ore prices to US$145/t, thanks partly to China's port stockpiles slipping for a third straight week. Fortescue Metals Group scaled a fresh peak, while BHP Group and Rio Tinto touched their highest since April 2011 and May 2008, respectively.

Energy stocks gained, with Santos (STO) up by 3 per cent after signing a long-term LNG supply and purchase contract with Diamond Gas International. It will supply 1.5 million tonnes of LNG annually for a decade.

Financial stocks underperformed the broader rally as regulatory woes continued for banks. The banking regulator said it had ordered a securitisation review after finding irregularities with how some banks repurchased residential mortgage loans that had repayments deferred. Westpac (WBC) finished unchanged on Monday. The bank announced the sale of its Pacific business for up to $420m. This is part of its strategy to simplify the organisation and includes the sale of Westpac Fiji and its Stake in Westpac Bank PNG.

CURRENCY NEWS: The Australian dollar traded flat at $0.7421.

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