Gains by mining and bank stocks helped push the ASX higher on Monday. Image by Dan Himbrechts/AAP PHOTOS

financial markets

ASX closes up 1pct as banks, miners gain

2020-07-13 17:33:03

Major moves by banks and mining companies have given the local bourse a strong start to the week even as local coronavirus cases surge.

The benchmark S&P/ASX200 index finished Monday up 59.3 points, or 0.98 per cent, at 5,977.5 points, while the All Ordinaries index gained 53 points, or 0.88 per cent, at 6,089.3.

The ASX200 started the day up as much as 1.5 per cent early, hitting a high of 6,007.4, then faded until just after lunchtime before rebounding later in the afternoon.

Mining and banking stocks contributed most of the gains throughout the day, said CommSec market analysts Steven Daghlian, with real estate chipping in later in the day.

Mining titan BHP gained 2.2 per cent to $36.97, Fortescue Metals climbed 3.4 per cent to an all-time high of $15.36 and Rio Tinto added 1.9 per cent to $99.84.

Among the major banks, CBA gained 2.1 per cent to $72.12, ANZ added 1.9 per cent to $18.64, NAB was up 1.7 per cent to $18.17 and Westpac advanced 1.8 per cent to $17.97.

 Energy stocks were also doing well, after oil prices climbed more than two per cent as the International Energy Agency (IEA) bumped up its 2020 demand forecast.

Woodside Petroleum added 1.8 per cent and Santos gained 0.6 per cent although Oil Search declined 2.0 per cent to $2.94 after announcing it would write off up to $576 million in assets, mostly exploration licences in Papua New Guinea it doesn’t intend to pursue.

Buy now, pay later company Sezzle gained 22.3 per cent to $8.50 – nearly seven times its IPO price from a year ago – after returning to trade following a $79 million capital raising.

Rival OpenPay soared 38.7 per cent to an all-time high of $4.05 and Zip Co gained 5.4 per cent to an all-time closing high of $7.63 – up 115 per cent for the year – as a phenomenal run for the sector continued, although Afterpay eased 0.8 per cent to $71.74.

Star Entertainment Group closed down 0.4 per cent to $2.69 after announcing a patron who visited its Sydney casino on July 4 had tested positive for COVID-19.

Estia Health dropped 3.3 per cent to $1.45 after the aged care provider announced a coronavirus outbreak at its Ardeer home in Melbourne’s western suburbs had infected 13 residents.

Dacian Gold dropped 19.0 per cent to 32 cents after announcing that its gold production next fiscal year would be below previous forecasts.

The Australian dollar was buying 69.70 US cents, up from 69.33 US cents at the close of trade on Friday.

ON THE ASX

* The benchmark S&P/ASX200 index on Monday closed up 58.3 points, or 0.98 per cent, at 5,977.5 points

* The All Ordinaries closed up 53 points, or 0.88 per cent, at 6,089.3 points

* At 1728 AEST, the SPI200 futures index up was flat at 5,937 points

CURRENCY SNAPSHOT

One Australian dollar buys:

* 69.79 US cents, from 69.33 US cents on Friday

* 74.55 Japanese yen, from 74.90 yen

* 61.59 euro cents, from 61.54 cents

* 55.17 British pence, from 55.12 pence

* 106.15 NZ cents, from 105.75 cents.