a day ago
Aussie shares target record close as bank stocks rally
The Australian share market is on track for its best close, as US-China trade talks continue and the nation's corporate watchdog fast-tracks local stock listings.
The S&P/ASX200 jumped 65.1 points, or 0.74 per cent, to 8,578.8, as the broader All Ordinaries rose 62.6 points, or 0.72 per cent, to 8,804.5.
By midday, the top-200 was ahead of its February 14 record close of 8,555.8, but 64 points short of its 8615.2 intraday high, also set on Valentine's Day.
The uptick followed two positive Wall Street sessions after local markets paused for the long weekend, and as officials from the US and China work to reach common ground on trade, particularly on rare earths and technology export restrictions.
A two-year trial by the Australian Securities and Investments Commission to speed up the local listing process also had traders talking about a potential boom in initial public offerings, Moomoo market strategist Jessica Amir said.
"A flood of IPOs would not only encourage foreign investment on the ASX, but also get Aussies more involved in their wealth creation," she said.
Under the trial, ASIC will shorten the timeline for companies to list on the ASX, reducing deal execution risk and shortening the window of market volatility ahead of the public offering.
"Our initial public offerings are the lowest they have been in over a decade, and companies are de-listing," ASIC chair Arthur Longo said.
'While we do not see regulatory settings as the silver bullet, we have received lots of ideas and are considering further regulatory adjustments to support a strong and well-functioning market."
Nine of 11 local sectors were trading higher by lunchtime, as banks (+1.2 per cent) and consumer discretionary stocks (+1.3 per cent) led the bourse higher.
All big four banks were trading at least one per cent higher, and the Commonwealth Bank was again within one per cent of its $182 record share price reached last week.
Buy now, pay later player Zip Co was among the top-200's best performers, up almost six per cent to $2.32.
Energy stocks led the gains in early trade and were up 1.1 per cent by midday, as positive signs from US-China trade talks helped oil prices to seven-week highs.
Brent crude futures are trading at $US66.83 a barrel as a potential deal could boost the outlook for global growth and crude demand.
The talks also helped lift large cap miners BHP and Fortescue by more than one per cent each, helping to push the materials sector 0.3 per cent higher.
Gold miners were a sea of red, as risk-on sentiment pushed investors away from the safe haven in search of growth, with gold futures slipping to $US3,372 ($A5,105) an ounce.
Uranium, lithium and other critical minerals plays were also higher.
A lift in consumer discretionary stocks came with rallies for gambling machine plays Aristocrat Leisure (+2.7 per cent) and Light & Wonder (+4.0 per cent), along with a two per cent lift in JB Hi-Fi.
IT stocks jumped 0.8 per cent, with help from data centre play NextDC, which surged 5.4 per cent to after announcing yet another improved contract utilisation update.
The Australian dollar is buying 65.12 US cents, up from 64.41 US cents on Friday at 5pm.
