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A tumultuous week ended on a high today as Federal Government changes to lending laws sent banks soaring.
Treasurer Josh Frydenberg announces the lending reforms today as JobSeeker and JobKeeper payments get ready for their trim. Essentially, the laws roll back some responsible lending standards for banks, making it easier for people and businesses to borrow money.
While the move has been criticised by some consumer rights groups as giving banks the opportunity to return to the misbehaviour uncovered in the Hayne Royal Commission, the stock market liked it.
The ASX 200 rose 1.51 per cent to close at 5964.9 points — taking our total weekly win to 100 points.
The financials sector led the charge today with NAB and ANZ each putting on over six per cent. Despite yesterday’s $1.3 billion fine, Westpac surged 7.39 per cent. Commonwealth Bank gained 3.01 per cent — lower than its peers, but certainly strong by ordinary standards. Investment banker Macquarie missed out and lost a slight 0 per cent.
While gains across the rest of the market paled in comparison to our banks, our resource stocks did what the could to add to the wins. BHP led the iron ore miners with a 1.87 per cent gain, while Rio Tinto gained 0.83 per cent. Fortescue Metals just missed out and closed 0.25 per cent lower.
Our gold subsector posted the best gains of our materials stocks, with Evolution Mining closing a neat 3.44 per cent higher. Newcrest gained 2.97 per cent, Northern Star gained 3.18 per cent, and Saracen gained 1.81 per cent.
Meanwhile, the technology sector had a moment out of the spotlight today and climbed 0.75 per cent up. Afterpay gained 1.98 per cent and Xero gained 0.23 per cent, but the wins were largely offset by a 2.25 per cent fall from WiseTech.
Among our consumer stocks, our supermarket giants flexed their influence on the wider sector as, despite solid gained from the likes of The a2 Milk Company and Coca-Cola Amatil, the sector only rose 0.05 per cent. Woolworths lost 0.21 per cent and Coles lost 0.23 per cent.
Healthcare was the only sector to miss out today as eight of its 10 biggest stocks by market cap each closed red. Sector leader CSL gained 0.08 per cent, but hearing aid giant Cochlear lost 0.21 per cent. Sonic Healthcare lost 0.92 per cent.
Across the Pacific, it’s mostly green for major Asian markets today. Hong Kong’s Hang Seng and China’s Shanghai Composite are the only big indexes below the grey line, currently down by 0.53 per cent and 0.29 per cent, respectively. Japan’s Nikkei 225 is up 0.51 per cent, while the Asia Dow is up 0.46 per cent.
The Australian dollar is slightly stronger this afternoon, currently worth 70.59 US cents, 55.34 pence, and 11.96 South African Rand.
Today’s ups and downs
Exploration company Jindalee Resources (ASX:JRL) has emerged as one of the week’s best performers in the aftermath of Tesla’s Battery Day event earlier this week. The company owns the McDermitt lithium project in Oregon, USA. When Tesla announced the decision to step into the lithium mining market, Jindalee used the opportunity to tout the relevance and importance of this project. Shareholders agreed, and the company gained 39.77 per cent today to close with shares worth 62 cents each.
Meanwhile, Aeon Metals (ASX:AML) disappointed shareholders with a company update in which Aeon said it would be pushing back the completion date of a pre-feasibility study (PFS) for its Walford Creek Copper-Cobalt Project in Queensland. The company has decided to take on some extra metallurgical test work to take into considering in the study, meaning the PFS is now slated for completion in the first quarter of 2021. Shares in AML declined 15.38 per cent to close worth 11 cents each.
