Australian shares higher as some states lift border curbs

Published On: November 23, 2020Categories: Stocks & Shares1.6 min read

The S&P/ASX 200 index finished 0.3% higher after rising 0.8%

Australian shares closed higher on Monday with heavyweight energy and mining firms leading the charge, as lifting of border curbs in the country’s two most populous states boosted risk appetite, while New Zealand ended firmer on record retail sales.

The S&P/ASX 200 index ended 0.3% higher after rising as much as 0.8% during the session.

New South Wales and Victoria reopened their borders on Monday after more than four months of closure to contain the COVID-19 spread.

As long as we don’t get a huge spike in coronavirus cases here in Australia and borders continue to reopen, all of that’s going to be quite positive locally and if we get positive news on the vaccine front, that’s going to be an additional boost, said Steven Daghlian, a market analyst at CommSec.

Oil prices extended gains, sending the energy sub-index up 2.8% on hopes of a recovery in demand after successful vaccine trials.

Ampol, among the biggest percentage gainers on ASX200, surged more than 8% after the fuel supplier announced an off-market share buyback.

Reopening of the borders should see a surge in air traffic between Melbourne and Sydney, one of the busiest routes in the world before the pandemic.

The pandemic-hit travel and tourism stocks gained as states rolled back border closures, with Qantas, Sydney Airport and Regional Express all ending in the black.

The mining sub-index recorded its best session in two weeks with global miners BHP and Rio Tinto climbing 2.5% and 1.5%, respectively.

Theme park operator Village Roadshow surged nearly 17% after receiving a takeover offer from BGH Capital, while bourse operator ASX fell on the news of country’s corporate regulator launching an investigation into an outage at the country’s stock exchange last week.

In New Zealand, the benchmark S&P/NZX 50 index edged 0.5% higher to finish the session at 12501.74.

The gains came as retail sales in the pacific island nation jumped by a record 28% in the third quarter, recovering strongly from an historic 14.6% drop the previous quarter.

About the Author: Jonathan Adams

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