The S&P/ASX 200 index has returned to form on Wednesday and is up 0.6% to 6,705.5 points at lunch.
Here’s what has been happening on the market today:
Bank shares charge higher.
Australia’s big four banks are on the charge on Wednesday after S&P Global Ratings revised its outlook for the major Australian banks. The ratings agency advised that it made the move after APRA’s update on loss absorbing capacity indicated that the government remains highly supportive of Australia’s systemically important bank. The best performer in the group is the National Australia Bank Ltd (ASX: NAB) share price which has risen 1.3%.
a2 Milk Company upgraded.
The A2 Milk Company Ltd (ASX: A2M) share price has been in fine form today after being upgraded by analysts at UBS. According to the note, the broker has upgraded the infant formula and fresh milk company’s shares to a buy rating with an increased price target of NZ$17.50 (A$16.68). UBS is bullish on the company due to its strong position in the world’s largest infant milk formula market – China.
Tech shares rise.
Australia’s leading tech shares have followed the lead of their U.S. counterparts and pushed higher on Wednesday. U.S. tech shares rose on Tuesday night after trade talks were held between the U.S. and China. Leading the way on the local market are Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC) shares which are up 3% and 5%, respectively.
Best and worst performers.
The best performer on the benchmark index at lunch is the a2 Milk Company share price which has risen over 5.5% thanks to the UBS broker upgrade. Going the other way is the Pilbara Minerals Ltd (ASX: PLS) share price which has fallen 3.5%. Profit taking may be weighing on the lithium miner’s shares after a solid rise yesterday following the announcement of a new offtake agreement with Great Wall Motors.