Templates by BIGtheme NET
Home » Finance » Australian and New Zealand join global rally on strong US job report
Australian and New Zealand join global rally on strong US job report

Australian and New Zealand join global rally on strong US job report

SYDNEY/WELLINGTON: Australian shares leapt on Monday, gaining 1.7 percent by lunchtime, while New Zealand stocks also tracked global markets higher, boosted by a much-larger-than-expected jump in U.S. job growth.

The S&P/ASX 200 index added 91.06 points to 5,321.6 by 0206 GMT. The rally follows solid gains on Wall Street on Friday, when the benchmark S&P 500 touched all-time highs after the job report.

All sectors posted gains, as Australian shares tracked back towards their pre-Brexit high of 5,325.4 points.

“The bulls have been proactive this morning, particularly within materials and energy after overnight commodity strength,” said Gary Huxtable, client adviser at broker and advisory firm Atlantic Pacific Securities.

“We’re also seeing some bargain hunters re-emerging in the recently beaten up financial stocks, particularly those with U.K. exposure,” he said.

“Investors seem to look at these stocks as too cheap to pass up, as opposed to the risks that these sectors face moving forward.”

Following firming commodity prices in London on Friday, Australia’s resource sector shares posted significant gains, with mineral sands explorer Iluka Resources Ltd surging 9.6 percent and mineral explorer Independence Group NL rising 8.47 percent on announcing gold, zinc and copper production within or above guidance.

Malaysia-based gold and mineral miner Saracen Mineral Holdings Ltd gained 5.7 percent. Copper miner Oz Minerals Ltd added 5.2 percent.

Whitehaven Coal Ltd rose 6.46 percent on rising coal prices and construction company CIMIC Group, formerly Leighton Holdings, gained as much as 3.2 percent on being awarded an A$1.58 billion tunnel project in Hong Kong.

Financial stocks also posted gains, with Australia’s big four banks all jumping more than 2 percent. The strongest movers were Australia and New Zealand Banking Group, which gained 3 percent and Westpac Banking Corp, which gained 2.69 percent.

New Zealand’s benchmark S&P/NZX 50 index rose 0.7 percent or 48.17 points to 7,048.27.

The biggest gainer was New Zealand Refining, which rose 2.55 percent.

Health care was the best performing sector, with software company Orion Health Group up 2.54 percent and health appliance maker Fisher & Paykel Healthcare rising 1.4 percent.

The subsidiaries of Australian banks also rose, with ANZ up 2.59 percent and Westpac up 2.58 percent.

Copyright Reuters, 2016

Courtesy : BRecorder



Share On Facebook
Share On Twitter
Share On Google Plus
Share On Linkdin
Contact us
Please Like Facebook Fan Page
By Liking facebook Page you are Updated about Latest Videos & News