CBA shares are higher than before the pandemic struck and are closing in on all-time highs. NCA NewsWire/Sarah Matray
Camera IconCBA shares are higher than before the pandemic struck and are closing in on all-time highs. NCA NewsWire/Sarah Matray Credit: News Corp Australia

Australian sharemarket racks up third straight day of gains, Commonwealth Bank, CSL big movers

Rebecca Le MayNCA NewsWire

The Australian sharemarket rose for the third straight day on Wednesday, with heavyweights CSL and Commonwealth Bank among the winners.

The S&P/ASX200 finished 0.39 per cent higher at 7095.8 while the All Ordinaries Index added 0.28 per cent to 7344.2.

CommSec analyst Steve Daghlian said the local bourse had a slow start but bounced back then faded in the afternoon.

OpenMarkets Group chief executive Ivan Tchourilov said there was broadbased buying across most sectors.

Get in front of tomorrow's news for FREE

Journalism for the curious Australian across politics, business, culture and opinion.

READ NOW

“Our market is showing great resilience and is on track to make new all-time highs in the not-too-distant future,” Mr Tchourilov said.

“Looking back to where we were a year ago, you couldn’t have imagined our market would be where it is now.

“COVID presented one of the best buying opportunities in over a decade – and with the level of global stimulus still being pumped into the system, the market has every chance of continuing on its upward trajectory for some time to come.

COMMBANK DODGY FEES
Camera IconCBA shares are higher than before the pandemic struck and are closing in on all-time highs. NCA NewsWire/Sarah Matray Credit: News Corp Australia

“Buying the dips this year should reward investors as long as they’re picking good quality companies.”

Mr Daghlian said a handful of stocks made a big difference, including CSL, which received a broker upgrade.

The biotech giant gained 2.38 per cent to $277.66 despite chief operating officer Paul McKenzie detailing the negative impact COVID-19 had had on plasma collections at the Macquarie Australia Conference.

Another market mover was the Commonwealth Bank, which rose 2.5 per cent to $92.72.

Mr Tchourilov said CBA shares were higher than before the pandemic struck and were closing in on all-time highs.

“That’s a 75 per cent rally since the March 2020 low, which is massive for the country’s largest listed entity,” he said.

ANZ fell 3.23 per cent to $27.90 despite posting a statutory net profit of $2.9bn for the six months ending March 31, up 45 per cent on the previous first half.

ANZ also revealed it had become Australia’s the third biggest mortgage lender.

Mr Tchourilov said the 70 cent dividend ANZ declared far exceeded expectations and the bank was the most traded stock among OpenMarkets clients on Wednesday.

Westpac eased 0.12 per cent to $25.96 after the Australian Securities and Investments Commission lodged Federal Court proceedings against the bank for alleged insider trading dating back to 2016.

Westpac Bank Stock
Camera IconIt was a big day for bank news, with Westpac facing ASIC court action over a history-making and allegedly dodgy transaction in 2016. NCA NewsWire/Christian Gilles Credit: News Corp Australia

The accusations relate to a $12bn interest rate swap transaction with a consortium involving AustralianSuper and other companies, associated with the NSW government’s privatisation of a majority stake in electricity provider Ausgrid.

“The transaction remains the largest interest rate swap transaction executed in one tranche in Australian financial market history,” ASIC said.

National Australia Bank put on 0.44 per cent to $27.37.

Shares in Nearmap leapt 14.56 per cent to $2.36 before being placed in a trading halt relating to potential legal proceedings.

Travel stocks lagged as the NSW Premier announced a mystery case of COVID-19 had emerged within the community, with Flight Centre declining 5.39 per cent to $15.27.

Afterpay backtracked 3.46 per cent to $106.96 while IOUpay jumped 6.67 per cent to 40 cents after entering into a bill payment service deal with RMS Reloads in Malaysia.

FLIGHT CENTRE
Camera IconFlight Centre was a laggard. NCA NewsWire/Damian Shaw Credit: News Corp Australia

Mr Daghlian said energy stocks lifted after a 3.5 per cent rise in the oil price over the past two days.

He said there was a “tug of war” in terms of oil price drivers, with a lack of demand in COVID-ravaged India, which accounts for 5 to 5.5 per cent of the world’s oil demand, and hopes of higher demand in the US and Europe.

Woodside Petroleum appreciated 0.48 per cent to $22.97, Oil Search put on 0.52 per cent to $3.84 and Santos firmed 0.29 per cent to $7.

In the mining sector, BHP rose 1.1 per cent to $48.76 after announcing first oil production from the Ruby project in offshore Trinidad and Tobago, Rio Tinto was up 1.15 per cent at $124.54 and Fortescue lifted 0.27 per cent to $22.72.

QBE advanced 4.08 per cent to $10.45 after chairman Mike Wilkins told the insurer’s annual general meeting it intends to resume dividend payments this year.

The Aussie dollar was fetching 77.17 US cents, 55.51 British pence and 64.24 Euro cents in afternoon trade.