Australia: S&P/ASX 200 (.AXJO) advanced for the third time in ten sessions

Australia: S&P/ASX 200 (.AXJO) advanced for the third time in ten sessions

Australia: S&P/ASX 200 (.AXJO) advanced for the third time in ten sessions

Australian shares advanced for the third time in ten sessions as modest gains by the finance sector beat out losses made in the material sector following an overnight base metal retreat.

The S&P/ASX 200 index gained 32.1 points, or 0.91 percent to 6272.3, following a quiet overnight trading session as Wall Street closed for the US’s Independence Day.

The ASX looks like hitting new 10 year highs today after a solid 26 point gain in futures trading overnight Friday.

That’s despite the escalation of the China-US trade war which many analysts still claim could damage Australian exports to China.

But so far the market and investors have ignored those fears and the ASX has risen strongly (up 7.6% in the June quarter alone and 3.4% in the month of June).

The major banks rebounded from yesterday’s poor performances, lifting the index higher with some modest gains. Commonwealth Bank led the market for most of the day, climbing 1.2 percent to 74.76 AUDUSD.

ANZ led the big banks’ charge, jumping 2% on Friday to $28.99, followed by Commonwealth Bank, up 1.6% to $75.67, while NAB rose 1.6% to $27.96 and Westpac added 0.9% to $29.78.

Telstra shares have rebounded from its more than 7-year low last week, rising by 1.9 percent to 2.76 on Thursday and recording six straight sessions without loss. Its shares are still down 24 by percent for the year, but optimism appears to be creeping back in following the telco’s merger of its venture business with private equity player Harbour Vest Partners.

Local gold miners enjoyed a positive day on the market as the price of the precious metal continues to rise from recent lows. In a note on Thursday morning, ANZ said that the price could break above.

The materials sector also lifted, led by South32, which jumped 2.6% to $3.62.

In companies news, Isentia Group rallied 12.1% to 78.5 cents after reaffirming its full-year earnings guidance of $32 million to $36 million and announcing a veteran Australian media executive Ed Harrison as the company’s new CEO.

But Elders shares plunged 15.4% to $7.06 after the rural services group delivered an update signalling its full-year earnings will be flat due to the impact of drought across large parts of Australia.

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