Australia markets close in 2 hours 11 minutes

ASX200 finishes FY2020 with 1.4 pct rally

Derek Rose
The ASX is set to open higher early

Australian shares have closed out the financial year with a rally following a strong lead from Wall Street overnight, as the see-saw action continues for the fourth day.

The benchmark S&P/ASX200 index closed Tuesday up 82.9 points, or 1.43 per cent, at 5,897.9 points, while the broader All Ordinaries index was up 85.7 points, or 1.45 per cent, at 6,001.3.

"The market just wants to rally," said Tribeca Investment Partners lead portfolio manager Jun Bei Liu. "It's a very positive day."

Overnight, US investors turned optimistic after data showed the number of Americans signing contracts to buy homes rose a record 44.3 per cent in May from a month earlier, far more than the 17 per cent rise economists were expecting.

All three major US indices rose between 1.2 and 2.3 per cent.

For the local market it was the second straight time of a day of losses of over one per cent was followed by a day of gains, after four straight days in which the market was flat.

"That's the thing about sentiment, it can turn very quickly," Ms Liu said.

The ASX200 finished June up 2.5 per cent for the month, up 16.2 per cent for the quarter, down 11.8 per cent for the half-year, and the financial year down 10.8 per cent.

On Tuesday, the energy sector was the biggest gainer, rising 4.3 per cent as Woodside Petroleum gained 5.3 per cent to $21.65 and Santos climbed 5.0 per cent to $5.30.

Afterpay closed above $60 for the first time ever, rising 7.2 per cent to $60.99, not far from an all-time high of $62.99 set last week.

"It's going from strength to strength, just an incredible performance," Ms Liu said of the buy now, pay later giant.

Among its rivals Zip Co gained 2.8 per cent, Sezzle added 0.8 per cent and Openpay retreated 1.9 per cent.

Collins Foods rose 12.7 per cent to $9.42 after announcing its underlying full-year profit had lifted 5.1 per cent as Australians flocked to its trusted KFC stores during uncertain times.

All the big banks were higher, with CBA gaining 1.2 per cent to $69.42, Westpac adding 0.9 per cent to $17.95, NAB up 0.6 per cent to $18.22 and ANZ climbing 0.4 per cent to $18.64.

Infigen rose 2.7 per cent to 94 cents after the board of the wind farm operator backed an 89-cent-per-share, $864 million takeover offer from Spanish utility Iberdrola.

Etherstack climbed more than fourteenfold - going from 12 cents to $1.75 - after the 22-person, $13 million NSW company announced a deal with Samsung to work on 5G mobile technology for public safety officers.

TPG Corporation made its debut on the ASX under the stock code TPG following the merger of TPG Telecom and Vodafone Hutchison Australia, closing at $8.90.

CSL dropped 0.9 per cent to $287, dragging down the health care sector, one of the only two sectors to lose ground.

In the heavyweight mining sector, BHP rose 1.2 per cent to $35.82, Rio Tinto added 0.7 per cent to $97.96 and Fortescue Metals climbed 0.7 per cent to $13.85.

Retail Food Group, which runs Gloria Jeans cafes and Donut King, finished up 2.9 per cent to seven cents after ASIC told the company it will not take enforcement action after investigating a possible breach of the Corporations Act.

Meanwhile, the Australian dollar was buying 68.49 US cents, down from 68.84 US cents at the close of trade on Monday.

ON THE ASX

* The benchmark S&P/ASX200 index on Tuesday closed up 82.9 points, or 1.43 per cent, at 5,897.9 points

* The All Ordinaries closed up 85.7 points, or 1.45 per cent, at 6,001.3 points

* At 1732 AEST, the SPI200 futures index was down 13 points, or 0.2 per cent, at 5,880 points

CURRENCY SNAPSHOT

One Australian dollar buys:

* 68.49 US cents, from 68.84 US cents on Tuesday

* 73.77 Japanese yen, from 73.80 yen

* 61.10 euro cents, from 61.22 cents

* 55.84 British pence, from 55.70 pence

* 106.94 NZ cents, unchanged.