All Ords Jumps To New All-Time High

By Glenn Dyer | More Articles by Glenn Dyer

The ASX 200, the key benchmark for Australian investors has again shied away from its all-time high but the broader All Ordinaries jumped to a new all-time level yesterday.

The ASX 200 Index added 42.3 points, or 0.6%, to end the session at 6818, just 10 points shy of its November 1, 2007 peak of 6,82.

The All Ords though extended its record high, rising 39.5 points, or 0.6% to 6901.9.

Solid US earnings (except for Boeing and Tesla) and a big hint from RBA Governor, Phil Lowe that the central bank will cut rates again if need be, sent the market higher.

Those factors helped offset another fall in iron ore prices overnight Wednesday.

That fall – more than 8% from its peak earlier this month saw Rio Tinto shares lose 4.2% to close at $96.29. It is now down more than 10% since July 3.

BHP fell 1.8% to close at $40.59 and Fortescue Metals Group fell 5.5% to $8.25, even as it reported record quarterly shipments and said its average realised price for a tonne of iron ore was up almost 50% in 2018-19 (See separate story).

The negative sentiment came as the price for iron ore slid 2.4% to $US114.97 ($164.769) a tonne. The price has now fallen 8.6% since peaking at $US125.77 a tonne on July 2.

Even though lower interest rates will further crimp bank revenues and profits, the four majors were among the market leaders for a second session. Westpac shares rose 1.7% to $28.86, Commonwealth Bank added 0.8% to close at $83.00, NAB shares were up 1% to $28.61 and ANZ added 1.1% to $27.96.

CSL was also among the market leaders, rising 2.1% to $228.00 and closing just shy of its record high of $230.28 set on September 4 last year

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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