A rare good day on the ASX with a solid gain on hopes the US-China trade war may be losing some heat and some strength back in bank shares even though Westpac took a strike on its remuneration report at its annual meeting in Perth.
The ASX closed solidly higher on Wednesday as investor sentiment lifted on the back of positive signs from US-China trade negotiations.
But the question is whether these gains last until the ASX re-opens today or will something happen overnight to damage the fragile confidence?
The ASX 200 Index rose 77.6 points, or 1.4%, to 5653.5 while the All Ordinaries closed 76.1 points, or 1.4%, higher at 5727.3 as investors seem to regroup and rediscover recently lost confidence.
The big four banks lifted through the session with the Commonwealth Bank rising 2.4% to $70.08, ANZ adding 1.7% to $25.20, NAB also adding 1.7% to $23.89 and Westpac closing up 1.6% at $25.47, despite the strike vote at the AGM.
In fact, financials shrugged off the expected strike, and ones expected next Wednesday at the AGMs of the NAB and ANZ.
But a later ASX filing revealed more than 64% of the votes at the meeting were cast against the remuneration report – that’s a stunning vote of no confidence in the management and board of one of the country’s bluest of blue chips in the shape of Westpac.
Investors won’t be so blase today about the banks perhaps?
Big miners also enjoyed a solid day out with BHP closing up 1.5% to $32.19. Rio Tinto 1.7% higher at $74.10, Fortescue edged up half a percent to $4.15 and South32 climbing 2.9% to $3.18.
Energy stocks did a little better with oil prices steadying. Woodside Petroleum shares rose 2.3% to $31.61, Origin Energy jumped 3.6% to $7.11 and Beach Energy shares up 1.7% to 41.485 and Santos shares adding 0.7% to $5.69
Lithium group, Galaxy Resources saw its shares jump nearly 6% to $2.54 after the company announced it had intersected a new lithium-rich pegmatite lode at its Mt. Cattlin mine in Western Australia.
Gold miners though dipped, despite a small rise in the overnight price of the metal.
Shares in St Barbara fell 3.7% to $4.47, Regis Resources shares lost 3.% to $4.32, Northern Star Resources dropped 2.5% to $8.32, Evolution Mining shed 2.1% to $3.31 and Newcrest Mining closed trade at $20.95, down 0.6%.
