Australia shares three consecutive days of innovation high, today`s first burst of 7000 points
Australia`s stock market broke the 7,000 mark for the first time today (Thursday), hitting a new high.
The benchmark S & amp; P/ASX 200, which has been above the historic level since it broke the 7,000 mark in early trading, ended up 47 points, or 0.7 per cent, for the third straight day at 7041.8.
The Australian Composite Index, which broke the 7,000 mark last week, rose 0.6 per cent to 7,158 today.
The biomedical giant CSL is the main driver behind today`s rise in the local stock market, up 1.1 per cent and closing at $300.89 for the first time.
Shares of the Federal Bank (CBA) also advanced to 1 per cent, closing at $84.46. The other three big banks, Westpac, ANZ and National Bank, also rose between 0.7 per cent and 1 per cent.
Among the bigger risers, Challenger Financials jumped 5.6 percent to $8.80. Polyn Novo`s shares rose 5.3 per cent to close at $2.40. Mayne Pharma also rose 4.4 per cent to 47 points.
Technology stocks generally performed well, with Altium up 4.3 per cent to $38.14. WiseTech Global gained 4.1% to $25.32. Nearmap climbed 3.8 per cent to close at $2.71. Appen rose 2.8 per cent to $25.00.
The main shares that trailed the big local markets included toll road company Transurban, which closed 0.6 per cent weaker at $15.63. Shares of Santos Oil and Gas fell 1.2 per cent to $8.89.
Since the beginning of the year, Australian stocks have performed best in developed countries, jumping to 5.3% in the past two weeks.
Chris Weston, head of research at Pepperstone, a stock and exchange trading firm, said:" I think part of the reason [for the local stock market] is that investors are seeing the RBA relax again.
The central bank cut interest rates several times last year, causing interest rates to close to zero, and the stock market became the main destination for idle money in search of higher returns.
Furthermore, several interest-rate cuts have brought substantial "liquidity" to financial markets, with some investors taking advantage of low borrowing costs and high leverage to invest in the stock market, allowing a flood of hot money to flow into the stock market.
Analysts believe that the relaxation of US-China trade tensions and the expectations of local equity investors on the central bank`s interest rate cuts are important factors in the strong performance of the stock market today. However, the first-phase trade agreement signed by the United States and China yesterday does not mean that the trade war between the two major powers has ceased. It is only a temporary truce. The trade war may also heat up later this year, causing fluctuations in global financial markets.
