ASX climbs nearly 1pc amid broad-based rally; Telstra jumps

The Australian sharemarket climbed on Tuesday in a broad rally led by Telstra and the banks, as US blue-chip tech stocks helped push the S&P 500 to set its 35th record high at the start of the week.

The benchmark S&P/ASX 200 Index added 0.9 per cent, or 66.5 points, to 7829.7 at the closing bell amid lower volumes during the school holiday period. The All Ordinaries rose 0.8 per cent.

Gains in Apple and Nvidia helped the S&P 500 to extend its gains above 5500 points on Monday (Tuesday AEST).

IG analyst Tony Sycamore said a surprise parliamentary gridlock in the second round of the French elections had “failed to dent confidence on Wall Street”, which had helped the ASX 200 to erase all of Monday’s losses “on light school holiday reduced trading volumes”.

Telstra, big four banks

“Today’s gains have been broad-based with all 11 ASX sectors showing positive movement,” he added.

On the ASX, the communication services sector was the best performing, with Telstra adding 2.2 per cent to $3.73 after announcing it would increase the price of its mobile plans.

Property listing platform REA Group also firmed 2.2 per cent to $196.86.

Investors piled back into the big four banks, with the financials sector finishing 1.4 per cent higher. It comes as index heavyweight Commonwealth Bank firmed 1.8 per cent to $128.69, Westpac rose 2 per cent to $27.68, ANZ advanced 2 per cent to $29.29 and National Australia Bank added 1.4 per cent to $35.84.

The consumer discretionary stocks also rallied 1 per cent as retail conglomerate Wesfarmers edged up 0.6 per cent to $66.55. Gaming business Aristocrat Leisure climbed 1.7 per cent to $51.52 and The Lottery Corp added 1 per cent to $4.88.

Tech stocks edged higher, tracking the Nasdaq, with WiseTech adding 1.8 per cent to $98.89 and NextDC climbing 1.7 per cent to $18.44.

BHP, which accounts for about 10 per cent of the index, added 0.6 per cent to $43.74.

Stocks in focus

Bapcor finished 0.2 per cent lower to $5.06, after the company rejected a $1.83 billion buyout offer from Bain Capital. The ASX-listed car parts seller said the proposed offer did “not represent fair value” of the company, in an announcement. Separately, it appointed local 7-Eleven chief executive Angus McKay as the CEO and executive chairman.

Fast food retailer Guzman y Gomez slumped 4.8 per cent to $27.49 even as stockbroker Wilsons Advisory initiated coverage on the stock with an “outperform” rating.

Shares in online retailer Cettire fell 1.6 per cent to $1.24 as short sellers ramped up their bearish bets against the company. Data from S&P Global show Cettire is now the second-most-shorted stock on the ASX behind Pilbara Minerals.

And non-bank lender Resimac’s chief executive, Scott McWilliam, has resigned after nine years in the position. The shares lost 5.8 per cent to 81¢.