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Australian stocks 1pc higher at noon, S&P surges 1.03%, All Ordinaries adds 51.3 pts

Australian stocks 1pc higher at noon, S&P surges 1.03%, All Ordinaries adds 51.3 pts

PERTH: A strong response to the Murray news has pressed the Australian stocks more than 1 per cent higher at noon, as the shareholders picked up discounted bank stocks.
At 12.05pm (AEDT), the benchmark S&P/ASX200 index had risen 54.7 points, or 1.03 per cent, to 5390 points, while the broader All Ordinaries index added 51.3 points, or 0.97 per cent, to 5364.9 points.
The hotly awaited 44 recommendations of David Murray’s review into the financial system are still being digested by traders, but on first impressions Quay Equities said, talk of additional $16 billion to $20 billion in hedging funds across the four banks was unlikely to have any significant operational impact.
Quay also said investors were welcoming the timeline of implementation, which could realistically take a period of up to five years.
The most sweeping review of the nation’s financial architecture in almost two decades called for a major strengthening of the banking sector, tightening up property investment by self-managed superannuation funds and greater oversight of the scandal plagued financial advice industry.
Lonsec senior client adviser Michael Heffernan said Murray’s report was vague about the levels of capital he wanted the banks to hold, which was a relief to investors.
“Fundamentally, I don’t think it’s going to have any major impact even if it was fully implemented on our banks and that’s why they’ve probably shot up,” he said.
“It’s up to the government whether they’re going to act on any of these recommendations — it’s all going to be determined by the political imperatives.”
Meanwhile, the ANZ job advertisements series for November showed job ads increased for the sixth month running, with ads lifting a seasonally adjusted 0.7 per cent in November.