ASX surges as tech stocks lead rally
The Australian share market has rallied to recoup some of last week's stinging losses as global recession fears ease.
The benchmark S&P/ASX200 index finished Monday up 61.9 points, or 0.97 per cent, to 6,467.4 points, while the broader All Ordinaries was up 64.6 points, or 1.0 per cent, to 6,550.5 points.
"It's definitely been a solid start. We've seen the Aussie market take the lead of Wall Street from the back end of last week," CommSec market analyst James Tao said.
Bond yields rose, indicating that traders were buying less of them as their appetite for the safe-haven investment eased, Mr Tao said.
Every sector of the Australian share market was higher except for the material and utilities sectors, which were down slightly.
Tech companies led the rally, collectively up 3.2 per cent, with Afterpay gaining 4.3 per cent to $24.27, Altium up 5.0 per cent to $33.67 and Appen up 6.4 per cent to $24.52.
Energy companies also posted strong gains, up 2.2 per cent, with Yancoal up 6.5 per cent to $3.44 and Beach Energy up 10.8 per cent to a two-week high of $2 after the oil and gas producer nearly tripled its profit and raised its five-year production guidance.
A number of other companies reporting earnings made strong moves as the busiest week of reporting season began.
Lendlease gained 10.9 per cent to $15.01 after the construction and development company beat expectations with $467 million in full-year profit.
Bluescope Street fell 8.4 per cent to $11.18 after announcing its full-year profit was down 35 per cent to $1 billion and future earnings would likely be lower.
Specialist employee management services provider Smartgroup surged 21.7 per cent to a 10-month high of $11 after reporting late Friday that half-year profit had risen five per cent to $40.5 million.
NIB fell 6.3 per cent to $7.15 after the private health insurer reported profit rose 13 per cent to $149.8 million but that conditions for the sector was cloudy for the future.
Goldminers were down as the price of the precious metal dropped back to $US1507 an ounce, with mid-tier goldminers Saracen Minerals and Regis Resources falling 5.1 per cent and 4.6 per cent, respectively, after reporting full-year earnings.
Elsewhere in the mining sector, BHP gained 0.2 per cent to $36.25, Rio Tinto was up 0.3 per cent to $84.96 and South32 was up 2.2 per cent to $2.82.
All of the big banks were up, with Commonwealth gaining 1.6 per cent to $76.29, ANZ up 1.3 per cent to $26.72, Westpac up 0.8 per cent to $28.03 and NAB up 0.7 per cent to $27.22.
The Aussie dollar is buying 67.84 US cents, from 67.83 US cents on Friday.
ON THE ASX
* The benchmark S&P/ASX200 index closed up 61.9 points, or 0.97 per cent, to 6,467.4
* The All Ordinaries closed up 64.6 points, or 1.0 per cent, to 6,550.5
* At 1513 AEST the SPI200 futures index was up 14 points, or 0.22 per cent, to 6,442.
CURRENCY SNAPSHOT AT 1630 AEST
One Australian dollar buys:
* 67.84 US cents, from 67.83 cents on Friday
* 72.17 Japanese yen, from 72.04 yen
* 61.15 euro cents, from 61.13 cents
* 55.92 British pence, from 55.99 pence
* 105.62 NZ cents, from 105.43 cents.
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