| April 27
April 27 Australian shares whipsawed on
Thursday, following a flat Wall Street after U.S. President
Donald Trump's tax plan failed to excite investors.
The S&P/ASX 200 index rose 1.564 points, or 0.03
percent, to 5,913.6 by 0314 GMT.
Trump proposed slashing tax rates for businesses to 15
percent from the current 35 percent for public corporations and
39.6 percent for small businesses, and on overseas corporate
profits returned to the country.
But the one-page plan offered no specifics on how it would
be paid for without increasing the deficit, which many analysts
think would be difficult to achieve.
The S&P 500 ended 0.05 percent lower, while the Dow
Jones Industrial Average fell 0.1 percent.
Other than cues from the United States, some analysts also
saw the Aussie market consolidating after a sustained bull run.
"The question we're asking now is are we taking a bit of
pause today before we start moving up higher, or is the market
fully priced in, and are there potential downside risks ahead,"
said Chris Weston, Institutional Lender at IG Markets.
"We've seen a reasonable run over the past few days, and
markets are probably waiting for a catalyst to make them move.
We've also taken in a flat lead in from Wall Street."
Financials bolstered the Australian market, with the
financial index hitting a fresh 23-month high, led by
the 'Big Four' banks ahead of earnings next week.
"Banks have been outperforming other sectors lately, and
there's a general belief in the market that we're seeing a
turning point in banks' net interest margins and they should
turn profitable going ahead. We are expecting some reasonable
earnings growth from banks as well," Weston said.
Gold stocks also rose after prices of the yellow
metal edged away from two-week lows hit in the previous session.
Ramelius Resources Ltd, Resolute Mining
and Northern Star Resources rose as much as between 3
percent and 12 percent.
Lower commodity prices, however, hurt miners and oil
Oil majors Woodside Energy and Oil Search
fell 1.5 percent each, while Origin Energy fell 4.18
percent after oil prices slipped. .
Santos and Beach Energy which have
significant LNG assets, fell after the Australian government
proposed to restrict exports of liquefied natural gas during
times when domestic shortage (due to high exports) pushes up
local LNG prices.
Mining majors BHP Billiton, Fortescue Metals
and Rio Tinto fell 1.2 percent to 0.8 percent
after the most-active iron ore on the Dalian Commodity Exchange
slipped 1.2 percent.
Lower London copper and oil prices also pressured BHP
New Zealand's benchmark S&P/NZX 50 index rose 0.323
percent, or 23.68 points, to 7,358.81, led by consumer staple
and utility stocks.
A2 Milk continued to climb and posted a fresh
record-high after it said Thursday it was seeing unexpectedly
high demand for its infant milk formula via Chinese e-commerce.
For more individual stocks activity click on
(Reporting by Aparajita Saxena; Additional reporting by Ambar
Warrick in Bengaluru; Editing by Jacqueline Wong)