Independent and FREE - the way it should be

Share market enjoys best day since November

Your news, independent and FREE - the way it should be

Share market enjoys best day since November

[pj-news-ticker]

Share market enjoys best day since November and more gains predicted as confidence grows

Do you have a news tip? Click here to send to our news team.

Why Coast’s new high-speed connection is a game changer

The days of slow internet are ready to be relegated to the past due to the 2020 completion of the Sunshine Coast’s hook-up to More

Give us a break: call to save ‘green buffer’

A battle is looming to keep the Sunshine Coast 'distinct' from Brisbane by protecting a 23km green buffer between the two regions known as More

Urgent talks on rollout as National Cabinet meets

Australia's COVID-19 vaccination program is expected to undergo a "big reset" with details to be announced on Thursday. Prime Minister Scott Morrison met with state More

Australia’s share market had its best day since November and there may be more ahead after the Reserve Bank stepped up efforts to keep borrowing costs low.

The S&P/ASX200 benchmark index closed higher by 116.3 points, or 1.74 per cent, to 6789.6.

Investors saw bargains following Friday’s loss of 2.35 per cent.

The All Ordinaries on Monday closed higher by 102.1 points, or 1.47 per cent, at 7042.7.

All sectors were higher, and the biggest gains were in property, 3.27 per cent.

There were increases of more than two per cent for information technology, health and consumer discretionaries.

Financials and energy rose by almost two per cent.

Helping investor enthusiasm was the Reserve Bank’s decision to raise bond buying from $2 billion to $4 billion.

The bank will buy bonds from November 2024 to May 2028.

Bond yields and investors’ inflation concerns have risen further in recent weeks as investors grew confident that interest rates would rise in the long term.

Burman Invest chief investment officer Julia Lee noticed a positive response to the RBA decision.

“I guess the market is taking the RBA decision as a sign that central banks are willing to support lower borrowing costs, which is positive for risk assets, like property and shares,” she said.

Ms Lee said higher yields were encouraging for economic growth.

“It’s a good sign for the economy, but the problem is how quickly yields rose in a short time. It’s the speed, rather than the direction,” she said.

Still, the RBA decision could mean the share market’s rise continues.

“It’s a signal the party is going to go on for a bit longer,” Ms Lee said.

“The question is for how long?”

The ASX was also helped by the US House of Representatives having approved President Joe Biden’s $US1.9 trillion pandemic relief bill.

The Senate must next vote on the bill.

On the ASX, Crown Resorts had another director resign following a report which claimed the company was unfit to run a Sydney casino unless big changes were made.

John Poynton resigned after the gaming regulator asked him to do so, given his history with Consolidated Press Holdings.

Shares were up 1.51 per cent to $10.10.

Shipbuilder Austal rose 8.44 per cent to $2.57 after it said its US subsidiary won a $US235 million contract ($295 million) to build a ship for the US Navy.

Austal will provide a catamaran to be used for defence as well as disaster relief.

It is the 15th ship of this kind that Austal has provided to the US Navy.

Growthpoint Properties climbed 3.83 per cent to $3.25 after it sold leasing rights for two properties in Sydney Olympic Park for $66.1 million.

In banking, the Commonwealth was best of the big four and higher by 3.13 per cent to $84.11. NAB was next best, up 2.03 per cent to $25.14.

On Tuesday, the Reserve Bank board will meet to consider the record low cash rate of 0.1 per cent. Analysts do not expect change.

The Australian dollar was buying 77.55 US cents at 1719 AEDT, lower from 78.32 US cents at Friday’s close.

ON THE ASX

  • The S&P/ASX200 benchmark index closed higher by 116.3 points, or 1.74 per cent, to 6789.6 on Monday.
  • The All Ordinaries closed higher by 102.1 points, or 1.47 per cent, at 7042.7.
  • At 1719 AEDT, the SPI200 futures index was lower by five points, or 0.07 per cent, at 6752 points.

CURRENCY SNAPSHOT

One Australian dollar buys:

  • 77.55 US cents, from 78.32 cents on Friday
  • 82.61 Japanese yen, from 83.23 yen
  • 64.17 Euro cents, from 64.48 cents
  • 55.45 British pence, from 56.21 pence
  • 106.58 NZ cents, from 106.68 cents.

MORE NEWS

Terri Irwin gives glimpse of her role has grandma

Terri Irwin has given a glimpse of her new role as a besotted grandmother following the birth of Bindi's first baby. Terri posted a photo More

Great outdoors now much closer to home, survey finds

The Sunshine Coast and Noosa have ranked third in a list of dream destinations for outdoor adventures with a national survey showing most locals More

Coast veterans can share stories at suicide inquiry

Sunshine Coast veterans and their families will have the chance to tell their stories to a Royal Commission into Defence and Veterans Suicide. Federal Member More