Bellamy’s Australia closed 6.5 per cent higher at $7.25 and A2 Milk lifted 3.4 per cent to $10.40.
Consumer staple stocks were also among the market leaders on Thursday. Woolworths closed 1.8 per cent higher at $29.30 and Coles rose 0.6 per cent to $11.77.
The price of oil soared on Wednesday, with Brent crude lifting 8.8 per cent, its biggest gain since 2016. The price rise was driven in part by positive market sentiment and comments from Russia’s Energy Minister Alexander Novak who said he saw a more stable and balanced oil market, indicating OPEC and its allies would continue to support a rise in oil prices.
The energy sector was the best performing on Thursday as oil-exposed stocks lifted on the back of the price rise. BHP Group advanced 1.9 per cent to $34.15, Woodside Petroleum lifted 4.2 per cent to $31.06, Origin Energy climbed 4.4 per cent to $6.40, Oil Search was 3.1 per cent higher at $7.10 and Beach Energy rose 1.1 per cent to $1.33.
The major banks closed slightly higher on Thursday. Commonwealth Bank closed 2.5 per cent higher at $70.33, Westpac climbed 1.4 per cent to $24.19, NAB lifted 1.9 per cent to $23.34 and ANZ closed at $23.70, up 1.5 per cent.
Healthcare giant CSL also closed higher, lifting 3.4 per cent to $184.29.
Real estate and infrastructure stocks were among those trading in the red on Thursday although their losses were only small.
Stock watch
Carsales.com
Carsales.com’s strong core growth is being diluted by underperformance from its adjacencies, according to Citi who reduced the price target on the company as a result. The broker said losses from its finance business, Stratton Finance, were weighing the company’s earnings. “Carsales.com has announced a $48 million impairment of Stratton Finance, resulting from ASIC legislative changes to financing and continued tight credit conditions,” analyst David Kaynes said in a note from December 18. “While Stratton has seen higher contract volumes, the loan size and commission yield are both declining.” The broker also noted declines in the company’s display advertising segment. Citi reduced its target price on Carsales.com from $16.65 to $16 but retained its ‘buy” recommendation on the stock.
What moved the market
Amazon.com
Amazon.com’s share rebounded from a 10-month low on Wednesday, driven by an announcement from the company it had received more holiday season orders worldwide than ever before. The company also said there had been growth in its membership product, Amazon Prime, as customers looked to benefit from free same-day delivery. In September, Amazon.com became just the second company behind Apple to hit the $US1 million market capitalisation market. The company’s shares had fallen by a third since then but rose 9.5 per cent during trade on Wednesday.
Brent crude
Oil prices recovered from a heavy sell-off on Monday after returning from the Christmas break with Brent crude rising 8.8 per cent on Wednesday. Russia’s Energy Minister Alexander Novak said he expected to see a more stable oil market in the first few months of 2019. “I think that during the first half, due to joint efforts, which were confirmed by the OPEC and non-OPEC countries this December, the situation will be more stable, more balanced,” he said in an interview on Russian television. Oil prices still remain low however with Wednesday’s gains barely exceeding Monday’s sell-off.
Japanese yen
The US dollar rose against the Japanese yen for the first time in eight sessions on Wednesday. A poor lead up to Christmas on global stock markets had pushed investors towards the more safe-haven asset however Wednesday’s huge rally on Wall Street pushed investors away from the yen and back to the US dollar. US President Trump also expressed his confidence in Treasury Secretary Mnuchin and the Federal Reserve on Christmas Day, helping to settle some of the uncertainty around both Mnuchin’s and Fed Chair Powell’s positions, helping to push the greenback higher against the yen.
from Just News Viral http://bit.ly/2VaLQ0G
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