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Australia Market shines on bargain hunting

Capital Market 

Headline indices of the Australia share market closed stronger on Tuesday, 27 August 2019, as investors chased for bottom fishing, on following positive close of Wall Street overnight after U. S. President Donald Trump softened his tone against China and predicted the two countries would be able to reach a trade deal. Most of sectors on the ASX 200 index inclined, with technology, consumer discretionary, and financial sectors being notable gainers while the gold and energy sectors suffering the biggest losses. At closing bell, the benchmark S&P/ASX200 index added 31.15 points, or 0.48%, to 6,471.20.

Meanwhile the broader All Ordinaries index, which tracks the nation's 500 biggest listed companies, inclined 34.59 points, or 0.53%, to 6,565.60.

US President Donald Trump said on Monday that Chinese officials had contacted their U. S. trade counterparts and offered to resume negotiations, an assertion that China declined to confirm. His comments helped temper sharp losses in global markets after both sides announced new tariffs on Friday, in the latest escalation in the protracted trade dispute.

Investors will watch for further developments on the ongoing trade war between Beijing and Washington. Apart from the trade war, the equity markets also have to keep an eye on Brexit proceedings, monetary policy of key players such as the European Central Bank and moves in the Chinese yuan.

Wesfarmers Ltd (WES) shares advanced 1.1% after the company reported A$5.51 billion full year profit, which is more than four times their result this time last year. This is their first report post the de-merger of Coles Group (COL).

Nanosonics shares surged 32.7% after announcing a 39% increase in revenue and a 201% increase in operating profit.

Orocobre Ltd (ORE) was up 5.8% after a number of broker updates following their result last Friday.

Northern Star Resources (NST) shares declined 6.6% after the gold miner posted a 20% slide in first half profit as well as a takeover offer for Echo Resources (EAR) for 33 cents per share.

CURRENCY NEWS: The Australian dollar, a liquid proxy for emerging market and China risk, rose against greenback on Tuesday. The Australian dollar, sensitive to developments in China, Australia's largest trading partner, was steady at $0.6773 following a gain of 0.3% the previous day.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, August 27 2019. 12:49 IST
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