Optimism Grows on ASX, All Sectors Up

By AAP
May 11, 2020 Updated: May 11, 2020

Investors in the Australian share market can be happy with early trade after a gain of more than 1.0 percent and all sectors higher.

The S&P/ASX200 benchmark index was higher by 62.3 points, or 1.16 per cent, to 5453.4 points at 1200 AEST on May 11.

The All Ordinaries index was 64.5 points higher, or 1.18 percent, at 5552.5.

Energy stocks had performed best, higher by 2.26 percent, followed by industrials at 1.79 percent.

Macquarie Private Wealth division director Lucinda Chan said gains in oil prices and US markets on Friday helped the ASX performance.

Governments easing some coronavirus lockdown measures also played a role.

“As governments try to put people back in business, you’ll see the market giving it a positive tick,” she said.

However, Chan was unsure of the extent the easing of restrictions affected the morning ASX result.

The operator of Westfield shopping centres, Scentre Group, said more shops at its centres would open in the coming weeks as coronavirus lockdowns eased.

It said 57 percent of shops at its 37 Westfield malls across Australia were open.

Scentre shares were up 3.41 percent to $2.27.

Outdoor clothing retailer Kathmandu was also riding the reopening wave of success.

Its price rose by 9.71 percent to 96 cents.

Hearing implant manufacturer Cochlear said elective surgery had resumed earlier than expected in many countries.

Its shares were trading 3.73 percent higher to $188.43.

In energy, Oil Search was up 9.5 cents, or 3.31 percent, to $2.96, while Santos had a gain of 13 cents, or 2.68 percent, to $4.98.

Among the industrials, Brambles was doing well, up 21.5 cents, or 2.03 per cent, to $10.79.

In mining, BHP was up 25 cents, or 0.8 percent to $31.65, Rio was higher by 85 cents, or 1.02 percent to $83.85, and Fortescue gained 9.0 cents, or 0.75 percent to $12.13.

In banking, Macquarie had a great early result, up $5.89, or 5.6 percent, to $111.08.

Macquarie said it would try and raise $400 million through capital notes.

Among the big four: ANZ was higher by 10 cents, or 0.64 percent, to $15.83, Commonwealth Bank gained 60 cents, or 1.01 percent, to $60.20, NAB lost 7 cents, or 0.44 percent, to $16.01, and Westpac was 14 cents better, or 0.9 percent, to $15.65.

Elsewhere on the market, infant formula provider Bubs, which has had plenty of demand for its products from China, climbed 6.51 percent higher to $1.14.

One Australian dollar was buying 65.56 US cents at noon, up from 65.23 US cents at Friday’s close.

By Steven Deare