ASX ends higher as big banks and tech stocks rally
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket ended 1.16% higher, as big banks and technology stocks led a broad rally, tracking gains on Wall Street overnight.
Technology ended as the best performing sector while each of the big four lenders notched gains of more than 1%.
TPG Telecom was one of the best performing ASX 200 companies after the competition regulator cleared the way for its proposed $5.25 billion divestment to Vocus Group, while shares in Cleanaway, NRW Holdings and Arafura Rare Earths all advanced on fresh deal announcements.
The ASX 200 closed at 7,918.9, with 9 out of 11 sectors finishing in green.
Biggest ASX 200 movers:
- Technology (2.42%) — Tracked gains by the tech-heavy Nasdaq on Wall Street overnight. The sector's largest stock WiseTech Global added 2.51%, while tech manufacturer Codan (2.29%) joined the rally, boosted by an upgrade from Macquarie.
- Financials (1.86%) — Each of the big four lenders Commonwealth Bank (2.21%), ANZ (1.53%), Westpac (1.63%) and National Australia Bank (1.35%) climbed despite Morgan Stanley reiterating its bearish outlook on the sector and downgrading NAB.
Deals:
- Cleanaway Waste Management (1.96%) — Announced the $377 million acquisition of industrial services provider Contract Resources Group.
- TPG Telecom (5.93%) — The competition regulator said it will not oppose Vocus Group's proposed $5.25 billion acquisition of TPG's enterprise, government and wholesale business.
- Arafura Rare Earths (2.70%) — Signed a five-year offtake agreement with mining group Traxys for the sale of rare earths from its Nolans Project in the Northern Territory.
- NRW Holdings (3.23%) — Rio Tinto awarded its subsidiary Primero Group with a $100 million contract for work at its seawater desalination project in Western Australia.
Earnings:
- Washington H Soul Pattinson (0.84%) — Reported an 8% rise in first-half profit and increased its interim dividend, boosted by the partial sell down of Singapore telco Tuas.
- Brickworks (0.97%) — Swung to a first-half profit of $21 million, and lifted its interim dividend, but warned of "historically low" residential building activity.
- Sigma Healthcare (Flat) — Swung to a full-year loss of $13.8 million, impacted by write-offs connected to its merger with retail chain Chemist Warehouse.
Other news:
- Nanosonics (13.96%) — Received approval from the US Food and Drug Administration for its cleaning system for flexible endoscopes.
The Australian dollar is buying 63.36 US cents.
