ASX rises as all sectors bounce back
The Australian share market has rebounded following two days of steep losses, with every sector posting gains.
The benchmark S&P/ASX200 index finished Thursday up 76.5 points, or 1.16 per cent at 6,683.0, while the broader All Ordinaries closed up 76.7 points, or 1.14 per cent, to 6,791.1 points.
Fresh reports that a US-China trade deal was still possible by a December 15 deadline before the US raises tariffs on China helped sentiment, said CommSec market analyst James Tao.
IG market analyst Kyle Rodda noted the trading volumes were above average and the gains were broad-based.
"So, there's conviction behind today's move, even in light of what's still a pretty murky market environment," he said, while adding that the 76-point gains were not enough to even reclaim Wednesday's 106-point loss.
"But these things take time, and perhaps traders are just trying to work up their risk-appetite again, after having been ripped in the guts by the week's trade-war shenanigans."
The energy sector was the biggest gainer, up 1.6 per cent, as crude prices rose as much as four per cent overnight.
Beach Energy was up 3.9 per cent, Santos rose 4.2 per cent and Cooper Energy gained 3.8 per cent.
Caltex Australia was up 0.2 per cent to $34.38 after announcing a $500 million capital raising and the sale of an initial 25 petrol stations for $136 million as it contends with an unsolicited takeover offer.
But Whitehaven Coal weighed on the energy sector, dropping 10.3 per cent after announcing coal production would be down because of recent smoke, dust and haze events as well as difficulties finding skilled labour.
The big banks contributed 17.5 points to the rally, posting gains after the Reserve Bank of New Zealand's new capital requirements turned out to be not as onerous as first feared.
ANZ and NAB both gained 2.1 per cent, to $24.70, and $25.41, while Commonwealth Bank climbed 1.0 per cent to $78.62 and Westpac rose 1.2 per cent to $24.33.
Magellan Financial Group gained 3.6 per cent after announcing its funds under management grew by $410 million in November, to $97.7 billion.
Bellamy's shares rose 0.6 per cent to $13.22 after shareholders overwhelmingly approved its $1.5 billion takeover by China Mengniu Dairy Company.
Afterpay rose 2.3 per cent to $29.75 after announcing the buy now, pay later company had $1 billion in underlying sales in November, its best month ever.
In the heavyweight mining sector, BHP rose 1.6 per cent to $37.41 and Rio Tinto gained 0.8 per cent to $95.79, while Fortescue Metals climbed 2.3 per cent to $9.97.
Adriatic Metals soared 23.1 per cent to an all-time high of $1.625 after announcing drilling had found high-quality grades of precious metals at its Rupice project in Bosnia and Herzegovina.
Sports wagering company Pointsbet gained 4.2 per cent to $4.99, its highest level since debuting on the ASX in June following a $2-per-share initial public offering.
The Aussie dollar is buying 68.40 US cents, from 68.46 US cents on Wednesday.
ON THE ASX:
* The benchmark S&P/ASX200 index closed up 76.5 points, or 1.16 per cent, to 6,683.0 points.
* The All Ordinaries closed up 76.7 points, or 1.14 per cent, to 6,791.1 points.
* The SPI200 futures index closed up 68 points, or 1.03 per cent, to 6,679.
CURRENCY SNAPSHOT AT 1630 AEDT
One Australian dollar buys:
* 68.40 US cents, from 68.46 US cents on Wednesday
* 74.42 Japanese yen, from 74.09 yen
* 61.71 euro cents, from 61.60 cents
* 52.16 British pence, from 52.52 pence
* 104.67 NZ cents, from 104.73 cents.
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