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Aussie shares surged ahead for their fourth gain in five sessions despite soft US futures this morning.
Gains were somewhat muted until a sudden burst of energy in mid-afternoon trade. Around 2 pm AEDT, news dropped that the Chinese central bank was providing more economic stimulus by slashing its seven-day repo rate by 20 basis points to 2.2 per cent — its lowest level on record.
What followed was a sudden reversal in S&P 500 futures and a late-trade rally down under.
The benchmark ASX 200 index recouped all of Friday’s lost ground with a seven per cent gain. Back in the 5000s, the index closed at 5181.4 points.
All sectors on the ASX touched green before close, but none as much a the health care sector. The index put on an impressive performance today as CSL gained a whopping 12.02 per cent and Cochlear 9.82 per cent. Fisher and Paykel, Sonic, and Ramsay each put on more than eight per cent.
Protective gear developer Ansell soared 25.08 per cent ahead today after reaffirming its earnings guidance and reporting some increased demand for its protective products.
The heavyweight financials sector supported the charge today. Our big banks benefitted the most from the afternoon rally, with Commonwealth Bank taking charge and surging 10.91 per cent ahead. Westpac gained 8.53 per cent, NAB 7.87 per cent, and ANZ 8.47 per cent. Macquarie Group gained 7.05 per cent.
Resource stocks joined in on the fun, though they kept their gains more sensible. BHP tacked on 4.03 per cent, Rio Tinto 2.05 per cent, and Fortescue Metals 5.21 per cent. Newcrest Mining underperformed and lost 0.77 per cent.
Meanwhile, consumer stocks impressed as the staples and discretionary sectors joined forces to each rise more than 7.9 per cent. Supermarket giants Woolworths and Coles gained 9.6 per cent and 6.93 per cent, respectively. Retail conglomerate Wesfarmed put on 11.29 per cent, while Aristocrat Leisure gained 7.04 per cent.
Even our energy sector closed green today as it shook off another slump in oil prices. Woodside carried the sector with a 6.71 per cent gain, while Origin gained 2.31 per cent and Caltex a 2.2 per cent. Santos missed out and slipped 0.88 per cent.
Aussie shares demonstrated their independence today as Asian markets were red across the board. When the ASX closing bell sounded, the Asia Dow was lower by 1.23 per cent and Japan’s Nikkei 225 by 3.47 per cent. The Hang Seng was 1.29 per cent down and the Shanghai Composite 1.59 per cent down.
The Aussie dollar is slightly weaker again today, currently buying 61.43 US cents, 49.58 pence, and 11.03 South African Rand.
Today’s ups and downs
Life sciences company Cellmid (ASX:CDY) broke out of a trading halt today with a bang, not a fizzle after announcing in an aftermarket release on Friday it will be selling a Chinese COVID-19 rapid diagnostic test in Australia. Cellmid will be importing the Guangzhou Wondfo Biomed test kit, which is said to be able to diagnose COVID-19 in less than 15 minutes. Shares in Cellmid closed a hefty 213.13 per cent higher at 31 cents each today — their highest point since December 2018.
On the other end of the spectrum, shares in Decmil Group (ASX:DCG) lost over two thirds of their value today. The company released its half-year results today in which it outlined a 13 per cent dip in revenue and $75 million loss. Combine this with impacts from COVID-19, and the company’s got itself an 11-year low of 12.5 cents each as shares slumped 68.51 per cent in one day.
