Australia Market ends at two-week high

Headline indices of the Australian share market closed higher on Tuesday, 06 November 2018, despite the mixed cues overnight from Wall Street, with heavyweight material and energy sectors lifting the market as commodity prices firmed. Traders were also eying a decision by the Reserve Bank of Australia to keep interest rates on hold at 1.5% at its November meeting. Interest rates have been at ultra-low levels since August 2016. At closing bell, the benchmark S&P/ASX200 index inclined 57.04 points, or 1%, at 5,875.18 points, while the broader All Ordinaries index added 53.92 points, or 0.91%, to 5,958.72 points. Volumes were very thin due to a public holiday in Victoria for the Melbourne Cup horse race, with 386 million shares trading, about 35% lower than Monday's session.

Financials were ended mostly higher, with Commonwealth Bank rallying 1.4% to A$68.95, Australia and New Zealand shares up 1.3% to A$26.15, Westpac higher by 1.5% to A$26.92 and National Australia Bank up 1.1% at A$25.66.

 

Shares of materials and energy companies inclined, as commodity prices firmed. BHP Billiton shares climbed 1.3% to A$33.55, while South32 shares climbed 1.4% to A$3.69. Rio Tinto shares were up 2.1% at A$81.25 and Woodside Petroleum rose 1.7% at A$33.98.

The supermarkets and other consumer staples climbed 1.3% following figures detailing consumer confidence is on its way back up after a tumble related to the Wentworth by-election.

ECONOMIC NEWS: The Reserve Bank of Australia has kept the official cash rate on hold at the record low of 1.5% for the 27th consecutive month. The RBA has last cut the cash rate in August 2016, following an earlier cut to 1.75% in May. There has not been an official cash rate increase since November 2010.

CURRENCY: Australian Dollar was lower against greenback and other major currencies on Monday. The Australian dollar was buying 72.16 US cents, from 71.93 US cents on Monday.

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