ASX 200 makes surprise comeback to close higher Thursday

349
ASX stock market

A surprising turnaround has seen the Australian market finish the day higher on the back of healthcare and telco stocks as the financial sector shrugged off leftover jitters from Wall Street.

The benchmark S&P/ASX200 index was up 8.7 points, or 0.14 per cent, to 6,049.8 at 1630 AEDT, while the broader All Ordinaries rose 8.3 points, or 0.13 per cent, to 6,163.8, after the local market settled in the afternoon following an erratic open.

Bell Direct equities analyst Julia Lee says the market recovery was “remarkable” after its initial strong losses.

Healthcare, energy and telco stocks offset losses in heavy materials and a flat technology sector following a volatile morning.

CSL Limited softened to end the day up 1.91 per cent but healthcare remained the best performing index with Cochlear Limited up 3.25 per cent to $198.12.

Despite the weak market the Aussie dollar is back above 71 US cents which could indicate a lift in international participation despite a slump in the equities, Ms Lee said.

The Aussie is buying 71.30 US cents, up 0.25 per cent from 71.03 US cents at 1630 AEDT on Tuesday.

After four consecutive days of downturns US markets look set for a bounce, Ms Lee said, with positive moves on the Hang Seng and a fairly benign session in China pointing to regional expectations of a recovery on Wall Street.

Heavy materials remained in the red despite stronger iron ore and copper prices but big players BHP and Rio Tinto hung on to stay in the green.

The financial sector clawed its way back into the black with the big four banks all closing higher, rising between 0.04 to 0.32 per cent.

The Commonwealth Bank and its wealth management arm Colonial First State were hit by a class action lawsuit over allegedly uncompetitive superannuation returns, while the Australian Banking Association has unveiled a refreshed banking industry code that aims to stop lenders charging dead people.

The pressure also remain on gold miners despite a firmer price with Newcrest and Northern Star both down and Evolution losing 1.81 per cent to close at $2.71.

Supply-weakened aluminium prices kept South32 down and Alumina Limited flat however the energy sector was up 0.27 per cent after oil prices climbed overnight.

Elsewhere, shares in Navitas leapt 21.84 per cent after the Australian education provider received a $1.97 billion buyout offer from a consortium consisting of private equity firm BGH Capital Pty Ltd, fund manager AustralianSuper Pty Ltd and top shareholder Rodney Jones.

ON THE ASX:

* The S&P/ASX200 was up 8.7 points, or 0.14 per cent, higher to 6,049.8 points.

* The All Ordinaries was up 8.3 points, or 0.13per cent, higher to 6,163.8 points.

* In futures trading the SPI200 futures index was down four points, or 0.07 per cent, at 6022 points at 1630 AEDT.

CURRENCY SNAPSHOT AT 1630 AEDT:

One Australian dollar buys:

* 70.13 US cents, from 70.60 US cents on Tuesday.

* 80.59 Japanese yen, from 80.34

* 61.91 euro cents, from 61.34

* 54.13 British pence, from 53.86

* 1.09.85 NZ cents, from 1.09.56

GOLD:

The spot price of gold in Sydney at 1630 AEDT was $US1190.56 per fine ounce, down from $US1189.6 on Tuesday.

With AAP 

Here’s how you can strike it rich in the share market

The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly.

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Best of all, the report is absolutely free, exclusively for readers of The Capital Club.

In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits.

You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months.

Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double.

With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you.

See the 3 stocks

Read Next

Here are 6 of the best dividend stocks on the ASX for 2018 and beyond

Here are 10 ASX 200 shares to beat the traditional blue chips over the next 3 years

5 ASX blue chip shares for 2018 and beyond

Top fund manager names this iconic company as “the cheapest stock in the ASX 100”

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au