ASX 200
The ASX 200 index added more than 90 points today as investors continued to cheer the ongoing recovery of the economy. This was the fourth straight day of gains for the blue-chip Australian bourse. At the same time, the ten-year government bond fund yield rose above 1% for the first time since March.
Qantas share price rose by more than 8% as the company announced that it will resume some of its flights. The shares are trading at $4.55 and are 16% down for the year. In a statement, the firm said that it will resume about 40% of its national flights by the upcoming month. The company has been flying at about 5% capacity in the past few months.
Other travelling companies in the ASX 200 gained as well. Corporate Travel Management, whose shares have dropped by almost 40% this year rose by almost 9%. Similarly, shares in Flight Centre rose by more than 7%.
The travel industry has been affected significantly by the crisis. In Australia, it led to the bankruptcy of Virgin Australia, which was a major competitor of Qantas.
The ASX 200 index is rallying at a time when the Australian dollar has emerged as the best-performing currency in the developed world. In a statement, Deutsche Bank attributed the gains to the surging demand of iron ore, the Australian government response to the crisis, and the hawkishness of the Australian central bank. In a statement, the bank said that the Aussie was now overvalued.
The best-performing stock in the S&P/ASX200 was Unibail-Rodemco-Westfield, whose share price rose by more than 12%. The company’s shares rose after it announced significant progress in opening its shopping centres. It was followed by the travel companies mentioned above. Other significant winners in the S&P/ASX 200 were MacMillan Shakespeare, Orocobre, AP Eagers, and Harvey Norman among others.
On the other hand, the worst-performers in the ASX 200 were Nufarm, Gold Road Resources, Silver Lake Resources, and Jumbo Interactive.
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On the daily chart, the ASX 200 index ended the day at $5,994. The price is above the previous resistance level of $5,920 and is also above the 100-day and 50-day exponential moving averages. Also, it is important 50% Fibonacci retracement level. Most importantly, the index has formed a doji pattern, which is usually a sign that neither the buyers nor the sellers are in control. Therefore, it is possible that the index will move slightly lower after the significant rally.
On the other hand, a move above the today’s high of $6038 will signal that buyers are prevailing. This will see the index continue rising.
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