Australia Market finishes higher

The Australian share market finished session higher on Monday, 24 August 2020, as investor sentiment improved after a strong lead from Wall Street late last week following upbeat U.S. business activity data for August and on signs that the Trump administration may fast-track vaccines and treatments for coronavirus. Meanwhile, boosting sentiments were a significant slowdown in fresh daily coronavirus cases which fuelled hopes that a deadly second wave may be on the wane.

However, investor optimism was dulled to a degree by Treasurer Josh Frydenberg's forecast that effective unemployment in Australia would breach 13% by the end of September amid lockdowns.

 

At closing bell, the benchmark S&P/ASX200 index added 18.39 points, or 0.3%, to 6,129.57. The broader All Ordinaries rose 29.61 points, or 0.47%, to 6,300.33.

Market sentiment was supported by news over the weekend that the U.S. Food and Drug Administration is working to expand access to a virus treatment involving blood plasma from recovered patients. Also, as per reports, the Trump administration is considering whether to bypass regulatory standards to accelerate an experimental vaccine.

The country's second-most populous state of Victoria reported its smallest daily rise in fresh COVID-19 cases in seven weeks following strict lockdown curbs.

Afterpay shares advanced 4.8% after the buy-now-pay later firm said it would acquire Spain-based Pagantis and expand into Europe. Payment provider Zip Co was also solid, up 13.1% after flagging a number of positive developments at its US-based soon-to-be partner Quadpay.

Global miners BHP and Rio Tinto recovered from a soft start to add 0.6% and 0.2% respectively.

The big banks were soft, with ex-dividend ANZ down 0.9% and Commonwealth Bank shedding 1%.

Health insurer nib closed 5.8% lower after full-year net profit plunged 40% thanks to a A$98.8 million provision for deferred claims.

CURRENCY NEWS: The Australian dollar changed hands at $0.7176 following a decline last week from above $0.724.

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