ASX 200 market wrap: records smashed, CSL, CommBank, BHP stocks gain

Unprecedented highs were reached on the Australian stock exchange last week, with the overall market surpassing 7,000 points for the first time ever.

In the best start to a trading year for more than 25 years, almost all sectors were up last week.

Healthcare company CSL reached a new peak for an individual stock price, at more than $300 per share.

Medical innovator Polynovo jumped more than 20%, although agribusiness Nufarm values sank almost 10%.

After last week’s blockbuster movements, local markets opened higher this morning after another record-setting week on the US Dow Jones index. The US markets will be closed for a public holiday today and there is no major economic news expected. Australian data set for public release this week includes consumer sentiment, December jobs figures and the International Monetary Fund’s economic forecast.

More record highs?

Last week, the top 200 companies of the S&P/ASX200 notched up four record highs in four consecutive days last week to end the week at 7,069 points. This was up 2.02% on the previous record week. Both the ASX200 and the broader All Ordinaries index finished above 7,000 points on Friday.

Global markets were strongly positive, spurred on by news of an agreement between the US and China that sparked renewed hopes of an end to the long-running trade war between the world’s two largest economies. Last Thursday’s Phase One trade deal truce included commitments to increase some exports and imports and to reduce some tariffs.

All sectors except energy shared in the gains last week. The mining sector was one of the stand-outs, however, recording its highest level in nine years. Big miners BHP Group (BHP) and Fortescue Metals Group (FMG) pushed up the market with gains of 1.8% and 6.4% respectively. The Commonwealth Bank (CBA) and National Australia Bank (NAB) also assisted to push financials up 1.82%.

One of the big news items of the week was the record high for vaccine manufacturer CSL (CSL), which hit a price of $300.10. It is the second-biggest company on the exchange by overall value, after CBA.

Polynovo, Elders and Pro Medicus among the winners

The medical manufacturer Polynovo Ltd (PNV) achieved the strongest gains in the record week last week, with a 22.5% improvement in price to $2.45, continuing its strong start to 2020. The company made no specific announcements, except to release its annual general meeting audio after a request from a funds manager.

The company develops and makes skin-replacement products and recently supplied its NovoSorb product to hospitals in Australia and New Zealand, to treat survivors of the White Island tragedy. A fortnight ago, it announced it had achieved its first $2m revenue month in December 2019.

Regional and rural business Elders Ltd (ELD) gained more than 13% to $7.10 following a positive note from brokers, as did machine learning company Appen Ltd (APX).

Lithium stocks continued to experience volatility, although small-cap stock Pilbara Minerals Limited (PLS) performed strongly, gaining 11.1%.

Nufarm and Virgin Money UK fall

The biggest fall on the market was agricultural chemicals company Nufarm Limited (NUF). It issued an update on its first half guidance that advised its earnings would be lower than previously forecast. Investors didn’t like the news and sent the price 9.6% lower.

Virgin Money UK (VUK) also fell last week (6.4% to $3.29), continuing its volatile ride over the last year amid continued economic and political turmoil in Britain. It did not release any fresh announcements.

Investors weren’t impressed with investment management business Pendal Group Limited (PDL)’s revelation its funds under management over the last quarter had increased by 1% overall, and were flat in Australia.

The Super Retail Group (SUL), which owns camping and fishing shop BCF and outdoor retailer Macpac, shed 2.7% after a broker note downgraded the shares, citing the national bushfire disasters. It said people may be donating money instead of shopping.

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