ASX hits new high as Aussie dollar sinks

Australia’s sharemarket has hit a record high - while the Australian dollar has sunk to a decade low after China’s central bank cut interest rates.

The benchmark S&P-ASX 200 index finished on Thursday up 17.9 points, or 0.25 per cent, at a closing record of 7162.5 after setting an intraday record of 7197.2 in early afternoon trade.

The broader All Ordinaries index gained 17.8 points, or 0.25 per cent, to 7255.2.

“It’s pretty outstanding, isn’t it,” said Bell Direct market analyst Jessica Amir, who attributed the gains in part to company earning season.

“We’ve had a lot of surprises to the upside, which is great, and the big major players continue to shine.”

The Australian dollar meanwhile sunk to buying 66.30 US cents at 1433 AEDT - its lowest level since March 2009 - after the People’s Bank of China lowered its benchmark lending rates to stimulate an economy threatened by the coronavirus outbreak.

“There’s a lingering concern that maybe the Aussie dollar is one of those canaries in the coalmine right now,” IG market analyst Kyle Rodda said in a note.

At 1715 AEDT, the Aussie had rebounded somewhat to buying 66.47 US cents - down from 66.91 on Wednesday, and still a level not seen since March 2009.

On the ASX, every sector except health care and tech stocks were gainers on another busy day in reporting season.

Lendlease gained 6.7 per cent to a two-month high of $18.60 after the multinational property developer announced it made $313 million in half-year profit, up from a $16 million a year ago.

Qantas gained 5.9 per cent to a one-month high of $6.67 after the airline increased its dividend and announced a $150 million off-market share buy-back after a strong first half.

Coca-Cola Amatil gained 8.6 per cent to $13.07 after lifting its Australian revenue for the first time in seven years.

Fund manager Perpetual rose 11.2 per cent to $47.27 after announcing half-year profit dipped 14 per cent to $51.6 million.

WiseTech Global dropped 11.8 per cent to a one-year low of $18.88, on top of Wednesday’s 27.3 per cent fall that came after the logistics software company announced the Wuhan coronavirus outbreak would crimp its earnings forecast.

Other tech stocks also had a disappointing day, with Afterpay down 3.1 per cent to $39.26, Altium down 3.8 per cent to $35.88 and Appen falling 2.8 per cent to $25.02.

Southern Cross Media was the biggest ASX 200 gainer, rising 13.9 per cent to a two-week high of 86 cents after the Fox FM and Triple M owner swung from a $119 million loss last year into a first-half profit of $20.4 million.

All the big banks were up, with ANZ rising the most, by 1.0 per cent to a three- month high of $27.03.

NAB and Westpac were both up 0.3 per cent, to $27.40 and $25.69, respectively, while Commonwealth was up two cents to $87.85.

In the heavyweight mining sector, goldminers were mostly higher as the price of the precious metal remained above $US1,600 an ounce for a second day - its highest level since 2013.

St Barbara gained 7.3 per cent, Resolute Mining rose 5.3 per cent and Regis Resources climbed 5.0 per cent.

Mineral sands miner Iluka Resources rose 6.4 per cent to $10.03 after announcing it would spin off its royalty business on BHP’s iron ore mining in the Pilbara into an ASX listed company.

BHP gained two cents to $38.52, while Rio Tinto was up five cents to $98.14.

ON THE ASX:

* The benchmark S&P/ASX200 index finished Thursday up 17.9 points, or 0.25 per cent, at 7,126.5 points.

* The All Ordinaries closed up up 17.8 points, or 0.25 per cent, at 7,255.2 points.

* At 1719 AEDT, the SPI200 futures index was up 15 points, or 0.21 per cent, at 7,124 points.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 66.47 US cents, from 66.91 US cents on Wednesday

* 74.10 Japanese yen, from 73.43 yen

* 61.59 euro cents, from 61.77 cents

* 51.52 British pence, from 51.48 pence

* 104.54 NZ cents, from 104.25 cents.