Australia: Shares end the day higher
[SYDNEY] Australian shares reversed course to close higher on Wednesday, as heavyweight Commonwealth Bank of Australia's shares rose after news of the sale of its wealth management business and coronavirus provisions being broadly in line with peers.
The S&P/ASX 200 index ended the session 0.35 higher higher at 5,421.9, after having fallen as much as 2 per cent earlier.
The country's largest bank booked provisions of A$1.5 billion (S$1.37 billion) to cover pandemic-related loan losses and sold a 55 per cent stake in its Colonial First State business for A$1.7 billion.
CBA's three biggest rivals have already more than quadrupled their bad debt charges to a total of A$5 billion in their first half.
"The market has taken some encouragement out of Commonwealth Bank reporting decent results given the present headwinds," Henry Jennings, senior analyst at Marcus Today Financial said, adding that the majority stake sale further boosted confidence and looked "a lot like a quasi-capital raise."
Mr Jennings also said market sentiment recouped on hopes of a gradual reopening of the local economy and effective management of new virus clusters in the short term.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Data showed on Wednesday a measure of consumer sentiment jumped a record 16.4 per cent in May from April, raising hopes of a relatively quick revival in spending.
In New Zealand, the benchmark S&P/NZX 50 index ended 0.2 per cent lower, hurt by losses in the utilities and telecom sectors.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Asia stocks rise on Wednesday amid Wall Street rally; STI up 0.6%
Brokerage Haitong removes long-term Hong Kong unit chief Lin, appoints new head
Asia: Stocks rise on earnings optimism as US data approaches
Singapore stocks climb at Wednesday’s open; STI up 0.4%
Stocks to watch: MPACT, CapitaLand Ascott Trust, Hotel Properties, OUE Reit, CLCT
Europe: Tech, retail stocks boost Stoxx 600 to one-week high