Australia: Healthcare, tech stocks drive shares to their highest since end-Feb

[BENGALURU] Australian shares extended their rally to a seventh session on Wednesday, tracking gains in the Wall Street after encouraging vaccine news boosted US indexes to a record high, with domestic healthcare and technology stocks leading the charge.

Major averages on Wall Street touched record levels on Tuesday after Johnson & Johnson became the latest in a slew of companies to report positive results for its Covid-19 vaccine candidate.

The S&P/ASX 200 index gained up to 0.8 per cent and touched 6742.5 points, its highest level since Feb 26.

Adding to the positive sentiment, a measure of Australian consumer sentiment climbed for the fourth straight month in December to a 10-year high, amid gradual border reopenings between states.

Except for energy stocks, all major sub-indexes were trading in positive territory.

Tracking peers in the United States, local healthcare stocks led gains, jumping as much as 2.4 per cent. Shares of Healius rose the most, hitting their highest in over a month.

Tech stocks hit a record high, with gains in Xero and Afterpay among top boosts to the sub-index.

An overnight dip in oil prices on surging infections and lockdown worries dragged the energy index 0.6 per cent lower.

Origin Energy and Woodside Petroleum lost up to 1.5 per cent and 1.7 per cent, respectively.

Nickel and gold miner IGO went into trading halt before announcing that it would take a 25 per cent stake in Greenbushes lithium mine from China's Tianqi for US$1.4 billion.

Commonwealth Bank of Australia (CBA) said it would now fetch more from the sale of its stake in a Chinese life insurer to Japan's Mitsui Sumitomo Insurance after China's banking regulator green-lit the deal.

CBA's shares rose 1.6 per cent to their highest in two weeks.

In New Zealand, the benchmark climbed up to 1.5 per cent and was set for its best day in a month.

Infratil was the top percentage gainer after rejecting a US$3.78 billion buyout offer from AustralianSuper, calling out the bid for undervaluing its renewable energy and digital infrastructure platforms.

REUTERS