To 8000 and beyond: Aussie share market breaks through another barrier
The local share market has pushed further into record territory, with the ASX200 trading above 8,000 for the first time amid fallout from the assassination attempt on Donald Trump.
At noon AEST on Monday, the benchmark S&P/ASX200 index was up 71.8 points, or 0.9 per cent, to 8,031.1, while the broader All Ordinaries was up 68.7 points, or 0.84 per cent, to 7,274.2.
Capital.com analyst Kyle Rodda said the Trump shooting would colour everything in the markets to kick off the week.
“The markets have probably dodged their own bullet: if Trump had been hit, the potential social and political unrest in the United States would have caused panic among investors,” Mr Rodda wrote.
Every sector of the ASX200 was higher at midday, with consumer discretionaries, tech and telecommunications the biggest movers. All three sectors were up 1.4 per cent.
Wesfarmers had grown 2.0 per cent, Wisetech Global had climbed 2.4 per cent and Carsales.com owner CAR Group had added 2.5 per cent.
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All of the Big Four banks were higher, with NAB up 1.2 per cent, Westpac advancing 0.9 per cent, ANZ climbing 0.7 per cent and CBA adding 0.6 per cent.
In the heavyweight mining sector, Fortescue had gained 2.7 per cent, BHP was up 1.0 per cent and Rio Tinto had advanced 0.7 per cent.
Nanosonics was the biggest winner in the ASX200, climbing 9.7 per cent to a six-month high of $3.45 after the ultrasonic probe disinfection company reported $90.4 million in unaudited revenue for the six months to June 30, up 14 per cent from the same time last year.
On the flip side, Lifestyle Communities was the biggest loser, plunging 17.0 per cent to a nearly four-year low of $10.43 after ABC’s 7.30 Report aired a critical story about the retirement community operator quoting disgruntled residents.
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Lifestyle Communities said all of its fees are clearly articulated and it was proud of the transparency provided in its sales process.
Also, Aussie Broadband had slumped 17.5 per cent to $2.95 after the internet provider said its 2023/24 earnings would be at the top end of guidance and it was investing $10 million in launching a self-serve challenger brand, Buddy Broadband.
Overall the ASX200 is up 7.6 per cent for the year, including dividends.
Saxo Asia Pacific senior sales trader Junvum Kim said the ASX200 stood out with its second-highest dividend yield and price/earnings ratio among major Asian indices, but paled that of the Nikkei 225’s 24 per cent rise.
It’s also taken the ASX200 four and a half years to climb from 7,000 to 8,000, Mr Kim noted.
The ASX200 first traded above 7,000 back in January 2020, but two months later it plummeted below 5,000 as the COVID-19 pandemic emerged.
In currency, the Australian dollar was buying 67.77 US cents, from 67.61 US cents at Friday’s ASX close.
Cryptocurrencies were surging as traders apparently bet the assassination attempt would bolster the candidacy of Trump, who has pledged Bitcoin-friendly policies.
BTC hit a two-week high of $US61,500, or $A91,000 on Australian exchanges.
