The Australian sharemarket touched a two-month high on Tuesday as a risk-on rally extended into a second day, with investors taking a cue from the US to cycle into virus-battered sections of the index.
The benchmark ASX 200 finished Tuesday's session 28.5 points, or 0.5 per cent, higher at 6138.7, its best close in three weeks. At one point the index was within touching distance of its highest level since the coronavirus outbreak in March, and just 14 per cent off the all-time record close reached in February.
The ASX finished higher Tuesday. Credit:Louie Douvis
Remarkably, Tuesday's session was also the first time since early July that the ASX 200 recorded back-to-back sessions of gains. Travel, property, and banking stocks were among the major beneficiaries as investors again turned to some of the more unloved corners of the market.
TMS Capital portfolio manager Ben Clark said a similar theme had been playing out in the US, where tech stocks had been eschewed in favour of pandemic-weary financials in recent days.
"We're seeing a bit of a rotation into higher-beta stocks, the ones that ride the ups and downs of the economy, the ones that need an economic tailwind to get them going," Mr Clark said.
"The US market is selling off the stocks that did well during COVID - tech stocks like Amazon - and people are now piling into US banks."
Westpac led the way for the local lenders, up 2.7 per cent to $17.78. NAB followed with a 2.4 per cent rise to $17.88, while ANZ added 1.8 per cent to $18.49 and Commonwealth Bank rose 1 per cent to $74.70.
The property sector had the best day, on the whole, rising 2.1 per cent.
Investors cheered Shopping Centres Australia as the firm reported grocery hoarding, shopping locally, and increased eating at home were helping its suburban properties weather the COVID-19 storm. The firm's share price lifted 4.1 per cent to $2.08.
There were also gains of more than 4 per cent for sector stablemates Scentre, GPT Group, and Unibail-Rodamco-Westfield. Vicinity Centres rose 2.6 per cent and Stockland added 3.1 per cent.
Consumer discretionary finished flat as a collective but travel firms had a strong session. Corporate Travel rose 4.4 per cent to $10.41, Webjet added 5.6 per cent to $3.42, and Flight Centre rose 6 per cent to $11.70.
Retail and industrial conglomerate Wesfarmers earlier hit a record high of $47.44 before tailing off and finishing 0.1 per cent lower at $46.98.
Dominos Pizza also set a new intra-day record of $77.95 and closed 1.3 per cent higher at $76.68.
Supermarket Coles finished 0.6 per cent ahead at $18.97 and it, too, set a new all-time peak of $19.16.
Fortescue Metals closed 0.6 per cent lower before reaching a new high of $18.92, a mark which elevated Twiggy Forrest's stake above $21 billion. The materials sector was flat at the close, though BHP and Rio Tinto each gained 0.9 per cent.
Concrete fibre firm James Hardie rose 6.8 per cent to $32.22 after forecasting a potential increase in full-year profit.
Tech was the worst-performing sector on Tuesday, mirroring the NASDAQ's overnight decline to shed a collective 2 per cent.