Australian shares climbed across the board by early afternoon on Tuesday – buoyed by a fresh record for Commonwealth Bank and broader gains on Wall Street.
The benchmark S&P/ASX 200 Index rebounded 1 per cent or 73.7 points to 7807.4, having recouped Monday’s loss. The index was just 103 points away from a record high set in April. The All Ords advanced 0.9 per cent.
Ten of the 11 sectors were in the green, led by a rally in energy stocks on stronger oil prices. Woodside jumped 3.2 per cent, while Santos, Origin and South32 each rallied 1.5 per cent.
Oil prices extended their push higher with Brent crude popping to $US86.23, the highest in two months. It is now up 5.3 per cent this month.
Banks rally
“Traders report fresh speculative longs entering the market to add to the short-covering rally after its $US77 low in early June,” said Rodrigo Catril, a senior FX strategist at National Australia Bank.
The big four banks also climbed, continuing to defy expectations and brokers who have been advising investors to sell the shares.
Commonwealth Bank hit an all-time high of $128.68, bringing this year’s gain to more than 14 per cent. National Australia Bank climbed a nine-year peak at $36.72, up nearly 20 per cent since January.
The materials sector also buoyed the market with mining giant BHP advancing 1.6 per cent, Rio Tinto lifted 1 per cent and Fortescue gained 0.3 per cent in line with a rebound in the iron ore price.
On Wall Street, the Dow rallied 0.7 per cent, buoyed by gains in the financial, real estate and utilities sectors. A sell-off in Nvidia weighed on the S&P 500 and the Nasdaq as investors cashed out after its stunning year-to-date surge. The stock has tumbled 13 per cent in three sessions, ending its brief stint as the world’s most valuable company.
In a note, Oppenheimer Asset Management chief investment strategist John Stoltzfus said the US bull market still appeared “sustainable” as the rally broadened to more sectors and investors lifted their exposure to stocks.
“Some near-term profit-taking in the day-to-day action of the market, particularly in segments that have had exceptional run-ups since last year into this year, should be expected, and continues to appear to us quite normal.”
Stocks on the move
Paladin Energy dropped 5.4 per cent on news it has pitched a takeover of Toronto-listed Fission Uranium to bring its proposed Canadian mine into production by 2029.
KFC store operator Collins Foods was the ASX 200’s top performer, up 6.4 per cent after posting a record revenue and a six-fold jump in statutory net profit in fiscal 2024.
Online fashion retailer Cettire reversed early losses to be up 3.1 per cent.
Pathology group Healius bounced 0.8 per cent in choppy trading following a result update.
Speciality dairy company Synlait Milk tumbled 6.8 per cent after warning it could tip into insolvency if shareholders rejected a critical $NZ130 million ($120 million) loan approval.
Coal miner Coronado Global Resources marched 1.3 per cent higher after Energy & Minerals Group cancelled its plan to sell to Sev.en Global Investments due to regulatory issues.
Qantas eased 0.4 per cent on news it is upgrading its regional fleet with the acquisition of 14 De Havilland Dash 8 turboprop Q400 aircraft.
SkyCity rallied 1.5 per cent after selling its entire 10 per cent stake in Europe-based Gaming Innovation Group.
ResMed bounced 1.1 per cent in choppy trading after tumbling more than 13 per cent on Monday.
Star Entertainment shaved off 1.6 per cent after Morningstar downgraded its fair value estimate by 4 per cent to 86¢.