Australian shares rally once more

Australian stocks are higher as industrials bounced back despite continuing fears about the deadly virus outbreak in China.

The benchmark S&P/ASX200 index was up 25.2 points, or 0.36 per cent, at 7,113.5 points at noon AEDT while the broader All Ordinaries index was 25.2 points, or 0.35 per cent, higher at 7,224.2.

All sectors were in the green at midday except materials and utilities as industrials recovered from a hammering on Thursday on profit warnings.

IAG shares tumbled more than five per cent on Friday after it told shareholders it was going to make less money due to the cost of the hail storms that pounded Canberra, Sydney and Melbourne this week.

The stock was trading down 42 cents, or 5.44 per cent, at $7.30 at noon.

Lynas Corp shares rose after it posted a 7.4 per cent rise in quarterly revenue amid higher demand for rare earth elements. Its shares were up 7 cents, or 2.99 per cent, at $2.41.

The big four banks were also higher at noon, with the Commonwealth Bank up 78 cents, or 0.92 per cent, at $85.30.

Mining giants Rio Tinto and BHP were lower, with Rio down $1.93, or 1.82 per cent, at $104.26.

Overnight US share markets posted a mixed performance as global markets fell amid fears about the economic impact of the coronavirus in China.

Travel, autos, and resources sectors have all been hit hard while healthcare is doing well amid concern over coronavirus.

The US dollar was buying 68.46 cents at noon AEDT, down from 68.59 cents at Thursday’s close.

AAP

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