Australian Banks Keep Rising and Push ASX Higher

Australias big four banks are enjoying another surge in early trade on the ASX, and the main indices are more than 1.5 percent higher.

The S&P/ASX200 benchmark index was up by 100.4 points, or 1.74 percent, at 5875.4 points after the first 30 minutes of trade on May 28.

The All Ordinaries index was 99.8 points, or 1.70 percent higher, at 5984.7.

Investors have pushed the financials sector 3.57 percent higher and ANZ had the greatest gain of the big four – 5.8 percent – to $18.98.

NAB leapt 4.91 percent to $18.82, Commonwealth Bank was up 2.78 percent to $66.09 and Westpac was higher by 3.98 percent to $18.31.

Macquarie Bank rose 3.15 percent to $114.44.

The enthusiasm for banks follows a UBS report on Wednesday that said banks would be major beneficiaries from the reopening of the world economy.

Meanwhile, Bendigo and Adelaide Bank has outlined a provision of $148.3 million for potential future impacts on account of the COVID-19 pandemic.

The regional bank says the extra charge to its accounts is based on a significant change to the economic outlook including lower GDP, higher unemployment and a reduction in residential and commercial property prices.

The news did not deter investors, who sent the share price up 6.2 percent to $6.68.

All sectors were higher except for property. After financials, the best performer was materials, higher by 1.8 percent.

BHP gained 1.83 percent to $35.09, Rio climbed 1.4 percent to $92.80 and Fortescue rose 2.68 per cent to $13.43.

The energy sector was barely positive, up 0.05 percent.

Giants Santos, Woodside and Oil Search were down by less than 1.0 percent.

Origin was a bright spot, up 1.72 percent to $5.93.

In industrials, shares in surveyor specialist Veris jumped 37.93 percent to 4.0 cents.

Veris said subsidiary Aqura Technologies had won contracts with BHP, Oz Minerals and US-based Cubic Corporation worth $4.3 million.

Meanwhile, businesses capital spending data from theRead More – Source