Australia’s benchmark index, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), has continued into its fourth consecutive day of gains today, reaching yet another five-year high following gains in the US overnight.
The Dow Jones closed higher for the first time in five days having gained 55.04 points or 0.36% which has helped the Australian market to climb to 5,314.3 – up from the previous five-year intraday high of 5,300.1 points.
Some analysts have suggested that the recent gains could also be attributed to the reinvestment of dividends back into the share market, whereby Goldman Sachs broker Richard Coppleson noted that $2.4 billion worth of dividends were received by shareholders last week whilst a further $6.3 billion has been paid this week. Another $6.08 billion is set to be received next week as well.
Whilst each of the banks started off trading in the black today, each are now in the red and acting as a drag on the market, leaving the gains to Australia’s largest miners. BHP (ASX: BHP) and Rio Tinto (ASX: RIO) have gained 0.1% and 0.3%, whilst Fortescue Metals Group (ASX: FMG) has delivered a more significant climb of 1%. The gains have been recognised after iron ore climbed US$1.10 per tonne to US$133.80 overnight.
Leighton Holdings (ASX: LEI) has also appreciated 3.2% whilst Atlas Iron (ASX: AGO) has risen 1.4%.
Whilst the benchmark index is climbing ever higher, there are less companies trading at bargain prices. Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”
- Which retailer is best positioned for the future?
- Gold’s drop squeezes miners, delights bullion buyers
- No housing bubble… yet
- September’s underperformers
Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
- Coronavirus (COVID-19): 6 charts every Australian needs to see – April 6, 2020 1:46pm
- Innovation through crisis – April 2, 2020 11:48am
- Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad? – March 26, 2020 3:39pm