ASX 200 market wrap: record high week with CSL, CommBank & Telstra among winning stocks

Australia’s stock market ended at a record high last week, achieving a new peak of more than 6,900 points.
ASX 200_type of investment options
Source: Pavel Ignatov (Shutterstock)

Calmer international relations by the end of last week, a buoyant market in the United States and some positive news on the domestic front – with the biggest jump in retail sales in two years – spurred on investors. Australia’s biggest companies CSL and the Commonwealth Bank recorded gains. Lithium miner Orocobre Limited jumped more than 20%. But gold company Resolute Mining did not fare so well, dropping more than 14%. Big names Qantas and Fortescue Metals also declined.

Markets will look to housing, tourism data and the US Beige Book

The ASX opened slightly lower on Monday to follow a lower US market, as anticipated.

Last week shareholders and investors bought into the Australian market, pushing the ASX 200 to a record high of 6,929 points. This was a gain of 2.91% for the first full trading week of the year.

The wider All Ordinaries also reached an unprecedented high of more than 7,000 points to end the week up 2.73% at 7,042.

This week, investors will be watching Australian data releases across housing, tourism, credit and consumer confidence.

Internationally, Chinese trade and GDP figures are set to be released. In the US, one of the key economic data sets used by the Federal Reserve central bank, the Beige Book, will be released on Wednesday.

S&P and All Ords Movements (03/01/2020 to 10/01/2020)
  Closing Points % Change
S&P/ASX 200 (XJO) 6,929 2.91%
All Ordinaries (XAO) 7,042 2.73%
Prepared by Canstar. Points taken as of Monday open to Friday close.

Australia’s biggest companies got bigger and grew market overall last week

Gains were made across the market, but the dominance of CSL, Australia’s biggest healthcare company and the second-biggest company on the ASX by market value, brought up the health sector 6.49%.

Investors bought into Telstra shares to push its price up 6.9% overall and grow the telecommunications sector up 6.03%.

Consumer discretionary stocks also increased significantly in value, up 4.08%. Consumer staples (up 3.79%), IT shares (up 3.72%), and energy shares (up 3.26%) also outperformed the wider market.

Sector Movements (03/01/2020 to 10/01/2020)
  Closing Points % Change
Consumer Discretionary (XDJ) 2,816 4.08%
Consumer Staples (XSJ) 12,706 3.79%
Energy (XEJ) 12,095 3.26%
Financials (XFJ) 6,120 1.82%
Health Care (XHJ) 43,503 6.49%
Industrials (XNJ) 7,175 2.70%
Information Technology (XIJ) 1,476 3.72%
Materials (XMJ) 14,126 1.66%
Telecommunication Service (XTJ) 1,356 6.03%
Utilities (XUJ) 8,261 1.22%
Prepared by Canstar. Points taken as of Monday open to Friday close.

According to CommSec, more than 70% of the top 200 companies grew in value over the week. In addition to Telstra and CSL, other significant gains that brought up the market included Wesfarmers (4.8%) and BHP Group (up 1.7%).

But amid calm international markets at the end of the week – following initial jitters over the Iran strike on US positions in the Middle East – safe haven gold miner Northern Star lost 3.8%. US-based medical device company Resmed shed 3.7% and Qantas also slipped back 2.4%.

ASX 200 – Top 5 Market Capitalisation Gains (03/01/2020 to 10/01/2020)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 CSL Ltd (CSL) $9,626,613,603 $299.14 7.6%
2 Commonwealth Bank of Australia (CBA) $3,487,371,828 $82.47 2.4%
3 Telstra Corporation Ltd (TLS) $2,973,324,464 $3.85 6.9%
4 Wesfarmers Ltd (WES) $2,262,011,282 $43.99 4.8%
5 BHP Group Ltd (BHP) $2,017,908,205 $39.88 1.7%
Prepared by Canstar. Prices taken as of week to week close.

 

ASX 200 – Top 5 Market Capitalisation Losses (03/01/2020 to 10/01/2020)
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 Northern Star Resources Ltd (NST) -$330,272,025 $11.42 -3.8%
2 Resmed Inc (RMD) -$322,657,018 $23.07 3.7%
3 Qantas Airways Ltd (QAN) -$260,888,789 $7.01 -2.4%
4 Fortescue Metals Group Ltd (FMG) -$215,527,545 $10.72 -0.6%
5 Unibail-Rodamco-Westfield (URW) -$204,265,059 $10.83 -4.4%
Prepared by Canstar. Prices taken as of week to week close.

Lithium miner jumps and CSL reaches record high

Despite not issuing any news, lithium miner Orocobre Limited’s share price shot up 20.3% last week. It and some other lithium miners, including Pilbara Minerals Limited (up 10.3%), may have benefited from a perceived increase in potential demand as other global companies are blocked from mining in some countries.

Telecommunications company Vocus Group’s shares rose amid a notice from the company one of its directors would increase his personal shareholding by about $500,000. The market responded positively, pushing up the price 11.1% to $3.21 a share.

Vaccine producer CSL also increased its price another 7.6% to $299.14 after positive positions from a broker and a reported early start to the US flu season. According to investment advice company the Motley Fool, CSL’s shares bounced off the back of a positive broker note from Credit Suisse that said demand would remain strong for CSL’s immunoglobulins products. This is a record price for the health company, which now has an overall market capitalisation of $9.6 billion.

ASX 200 – Top 5 Share Price Gains (03/01/2020 to 10/01/2020)
Rank Company Closing Share Price % Change
1 Orocobre Ltd (ORE) $3.41 20.3%
2 Vocus Group Ltd (VOC) $3.21 11.1%
3 Pilbara Minerals Ltd (PLS) $0.34 10.3%
4 Independence Group (IGO) $6.86 8.2%
5 CSL Ltd (CSL) $299.14 7.6%
Prepared by Canstar. Prices taken as of week to week close.

 

ASX 200 – Top 5 Share Price Losses (03/01/2020 to 10/01/2020)
Rank Company Closing Share Price % Change
1 Resolute Mining Ltd (RSG) $1.10 -14.4%
2 Silver Lake Resources Ltd (SLR) $1.31 -6.9%
3 Ingenia Communities Group (INA) $4.61 -5.8%
4 Regis Resources Ltd (RRL) $4.16 -5.0%
5 Unibail-Rodamco-Westfield (URW) $10.83 -4.4%
Prepared by Canstar. Prices taken as of week to week close.

‘Safe havens’ not so safe

Gold miner Resolute Mining also felt the impact of last week’s international events. When investors no longer sense bad news, they no longer flock to gold. This was likely a contributing factor in driving Resolute shares down 14.4%. Similar resources companies Silver Lake Resources (down 6.9%), and Regis Resources (down 5%) also appeared to bear the brunt of this phenomenon.

Investors opted out of leisure park and retirement village operator Ingenia Group (down 5.8%). It announced it expected the disastrous bushfires near Lake Conjola, on the South Coast of NSW, would cost the company “at least” $2 million.

Follow Canstar on Facebook and Twitter for regular financial updates.


About Rosanne Barrett:

Photograph of Rosanne BarrettRosanne Barrett has had more than 15 years’ experience in daily news media across Australia and Hong Kong, including eight years as a staff reporter at The Australian. Ms Barrett produces journalism, content and copywriting across a range of industries.

Share this article