Global Markets | Australian shares reclaim 9,000 mark as banks rally on CBA results

Australian shares reclaimed the psychologically key 9,000-point mark on Wednesday, as a rally in banking stocks after upbeat Commonwealth Bank of Australia results overpowered losses in biotech heavyweight CSL.

The S&P/ASX 200 ended 1.7% higher ‌at 9,014.8, ⁠its strongest close ⁠since late October. The benchmark had slipped below the 9,000-point mark that month after ​a hot inflation reading dampened hopes of interest rate cuts. Heavyweight financials climbed 3.8% to ​its highest level since early November, helped by the Commonwealth Bank of Australia (CBA), which rose 6.8% after reporting a record first-half cash earnings.

"CBA's bumper profits ​have traders positioning for similarly strong results from ⁠the other ‌major banks, with the rising tide of its performance ​lifting all ​boats in the financial sector," said Tim Waterer, chief ⁠market analyst at KCM Trade. Shares of the other "Big Four" ​banks, National Australia Bank , ANZ Group and Westpac, ​were up between 1.3% and 3.4%. ANZ and Westpac are set to report their results this week, while NAB is scheduled for the next. "Earnings season is off to a sprightly start, which has taken the focus away from interest rate worries and more towards corporate growth prospects," ‌Waterer said. In other company news, Domino's Pizza Enterprises shares rose 2.9% after the pizza chain operator tapped former McDonald's executive ​Andrew Gregory ​as its CEO. Power ⁠producer AGL Energy beat first-half profit estimates and narrowed the lower end of its full-year earnings forecast, sending its shares 11.8% higher. Biotech major CSL slumped ​18.2% to an eight-year low following CEO Paul McKenzie's departure and a sharp drop in half-year profit. That weighed on healthcare stocks which dropped as much as 6.2% to its lowest level in more than six years.


New Zealand's benchmark S&P/NZX 50 index closed 6.4 points lower at 13,507.28.