Australia Market extends gain expansionary budgets

The Australian share market advanced for third consecutive session to hit a new one month high on Wednesday, 07 October 2020, as investors' appetite for risk assets continued after the government promised billions in the federal budget to help take the coronavirus-stricken economy out of recession.

The Federal Budget handed down last night brought forward stage two tax cuts by two years which is seen as a positive for household consumption. Treasury estimates that it could boost disposable income by $6.9 billion in 2021.

At closing bell, the benchmark S&P/ASX200 index inclined 74.31 points, or 1.25%, to 6,036.38. The broader All Ordinaries added 75.35 points, or 1.22%, to 6,239.56.

 

The improvements were across all sectors with the consumer sectors, both staples and discretionary, among the leading advancers. Online retailers outperformed the retail space with online furniture retailer Temple & Webster (TPW) jumping 9.5% while Kogan.com (KGN) lifted 6%. Meanwhile JB Hi-Fi (JBH) closed 3.6% higher and Harvey Norman (HVN) added 2%. Wooloworths (WOW) stood out among consumer staples with a 2% improvement.

CURRENCY NEWS: The Australian dollar changed hands at $0.714 after seeing levels above $0.715 yesterday.

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