[‘You’ve got to keep buying’: ASX inches higher despite virus uncertainty]


‘You’ve got to keep buying’: ASX inches higher despite virus uncertaintySkip to sections navigationSkip to contentSkip to footerRenewed coronavirus fears weighed on local equities on Thursday, taking the wind out of an early rally that pushed the benchmark index to record levels.The S&P/ASX 200 rose 15 points, or 0.2 percent, to close at 7103.2 points. It had climbed as high as 7145.8 in early trade, surpassing the previous record of 7144.9 hit on January 22.Local shares briefly climbed to record highs on Thursday before coronavirus concerns returned. Credit: ReutersThe catalyst for the reversal was the release of updated figures on the coronavirus outbreak from China’s Hubei province, revealing a sharp increase in new infections and deaths caused by the virus because of the introduction of new diagnosis classifications.Having rallied earlier in the week on a slowdown in new cases, which helped boost optimism the outbreak was being contained, the sharp upward revision increased uncertainty over the potential human and economic toll of the virus.Loading“I think this is the most mispriced event in our generation, but until that is obvious you have to participate in the rally,” said James Whelan, investment manager at VFS Global Macro Fund.“As long as money is cheap and can get cheaper, and the world is not completely cactus, you’ve got to keep buying.”The coronavirus news overshadowed what was another busy day on the corporate earnings calendar.Breville Group shares were the standout performer, surging 27.6 per cent to $25.50 after the release of a strong interim profit report.Goodman Group also found tailwinds from its earnings update, jumping 5.8 per cent to $16.30.IDP Education, fresh from surging 29 per cent a session earlier after its profit update, climbed another 6.5 per cent to $22.82, closing at a fresh record high.TPG Telecom shares also had a strong day, climbing 11.5 per cent to $8.15 after the Federal Court approved its $15 billion merger with Vodafone-Hutchison Australia.Lynas shares also rallied 8.1 per cent to $2.28 on reports Malaysia has agreed to extend its rare earth processor’s licence for an additional three years.At the other end of the scoreboard, Treasury Wine Estates skidded 5.7 per cent to $11.18 after a large price target downgrade from Citi Research.Downer EDI slumped 5.1 per cent to $6.90 after a broker downgrade from Ord Minnett.Inghams Group shares slid 5.3 per cent to $3.55 while ASX Limited shed 3.4 per cent to $83.70 after its interim result disappointed investors.Most Viewed in BusinessLoading


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