Australia Market gains on upbeat offshore lead

The Australian share market finished session higher on Thursday, 03 September 2020, with buying sentiment boosted by continued Wall Street surgeon expectations for progress in the development of COVID-19 vaccines as well as for an additional fiscal stimulus package. Meanwhile, stronger data from the world's top two economies and hopes of additional U.S. stimulus lifted investor sentiment. But gains were somewhat capped as Covid-19 hot spot Victoria reported a triple-digit rise in daily cases for the first time in four days, blunting hopes for a speedy rollback of lockdowns.

At closing bell, the benchmark S&P/ASX200 index added 49.40 points, or 0.81%, to 6,112.61. The broader All Ordinaries rose 49.25 points, or 0.79%, to 6,301.04.

 

Australia's market commenced trading with strong footing on tracking gains on Wall Street overnight on expectations for progress in the development of COVID-19 vaccines as well as for an additional fiscal stimulus package. A US Federal Reserve survey showed US business activity and employment increased modestly through late-August, though the sluggish and uneven growth spurred expectations for Washington to reach a deal on fresh stimulus.

Shares of big four banks all posted gains of between 0.8% and 2%, with Commonwealth Bank of Australia rising 1.2%, while Westpac Banking Corp was up 1.9%.

Healthcare stocks added up, with heavyweights CSL and Resmed Inc gaining 2.5% and 1.7%, respectively.

Ex-dividend BHP was a notable a drag on the bourse - dropping 2.3%, while Xero also lost more than 3% for the session in the day after founder Rod Drury looked to sell close to $200 million of stock.

CURRENCY NEWS: The Australian dollar changed hands at $0.7355, slipping from an earlier high of $0.7381, as data showed Australia's economy has officially slid into a recession.

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