MIDDAY REPORT (12.30pm AEDT)
Yesterday, The Australian Stock market ended higher, All
Ordinaries index (XAO) gaining 1.1 pct or 44.2 pts to 4155.2. The
market started off stronger this morning up 1.2pct at the open of
European markets closed at a 5 month high, boosted by overseas
manufacturing data and strong German employment numbers. The U.S.
markets traded higher, money going into mining and manufacturing
stocks and the banks with the S&P KBW U.S. banking index
adding 3.3pts overnight.
At lunch, The All Ordinaries Index (XAO) continued to move
higher up 95 points or 2.3pct to 4,250 points. All sector moved
higher with the best performers yet again being in the materials
and industrial sectors. The industrial sector boosted by gains in
mining service stocks.
The S&P/ASX 200 Materials index rallied from the open and
at lunch was up over 3.5pct. Higher base metal prices (industrial
metals) on the London Metals Exchange (LME) also boosted key
Australian miners on overseas markets overnight. RIO Tinto
(RIO.L) share prices rose 6.4 pct while BHP Billiton (BHP.L) up
Today on the Australian markets RIO has added 3.31 pct to
$63.43 and BHP up 4.11 pct or 1.43 cents to $36.23. Fortescue
Metals Group Ltd (FMG) up 3.85 pct or $0.17 to $4.58 . OZ
Minerals Limited (OZL) shares up 5.1 pct to $10.70. Steel stocks
also higher, OneSteel Limited (OST) up 7.75 pct to $0.76 and
BlueScope Steel Limited (
) up 4.88 pct to $0.43.
The price of gold continued its upward trend overnight adding
another US$34 an ounce to above US$1,600 an ounce. Silver and
platinum prices also rallied with the US dollar price of silver
ending 5pct higher to US$29.57 an ounce and platinum at
US$1,432.50 an ounce. Our largest listed gold miner Newcrest
Mining Limited (NCM) shares up 2.31 pct to $31.41. St Barbara
) added 5.25 pct to $2.10 while PanAust Limited (PNA) increased
3.68 pct to $3.38. Gold One International Limited (
) up 7.14pct to $0.52 cents.
World crude oil prices rose on Tuesday night in response to
stronger global economic data, a weaker U.S. dollar and mounting
tensions between the US and Iran. The S&P/ASX 200 Energy
Index up 2.81 pct, Woodside Petroleum Limited (WPL) up 3.36 pct
to $31.72 and Santos Limited (
) added 2.67pct or $0.33 to $12.67. Worley Parsons Limited (
) one of Australia's largest oil & gas, mineral & metals
industries service providers up 4.5 pct or $1.16 to
The S&P/ASX 200 Industrial Sector were higher,
Transpacific Industries Group Limited (TPI) reversed yesterday's
slide up 1.9 pct to $80 cents and Sydney Airport (SYD) up 1.49
pct to $2.73 and Qantas Airlines (QAN) up 4.05 pct to $1.54.
Defensive stocks were under pressure the retail investment
stocks, basic retailers and utility stocks listing losses or
small gains. In the health care sector, blood and plasma maker
CSL Limited (CSL) slightly higher after yesterday's falls at
$32.32. ResMed Incorporated (RMD) is one of the weaker stocks on
the market off 0.80 pct to $2.48. Blackmores Limited (BKL) and
Ansell Limited (ANN) also lower.
The S&P/ASX 200 Consumer Discretionary sector
(discretionary retailers) added 2.15pct. After continual weakness
department store owner Myer (MYR) rallied from the open of trade
and by lunch had added 3.36pct to $6.50 and rival David Jones
(DJS) up 4.31 pct to $2.42. Harvey Norman (HVN) reversed
yesterday's falls up 3.31 pct to $1.87. While online
accommodation, activity and flight booking services company,
Wotif.com Holdings Limited (WTF) added 0.84 pct to $3.60. Webjet
Limited (WEB) moved in the other direction off 0.82pct to
Media sub sector has performed well, helped by lift in News
Corporation (NWS) shares and Fairfax Media (FXJ) Limited added
The S&P/ASX 200 Financials index also higher up 1.8 pct,
the four major banks leading the way. Westpac (WBC) up 1.69 pct
or 34 cents to $20.50. National Australia Bank (NAB) up another 2
pct and Commonwealth Bank of Australia (CBA) up 1.23pct to
$50.22. While insurers QBE Insurance Group Limited (QBE) and
Suncorp Group Limited (SUN) added around 2pct.
Telstra Corporation Limited (TLS) higher by 1.5pct to
The Australian dollar continued to move higher, 1 Aussie
dollar will now buy you US103.53 cents and €79.34cents. The
Aussie Dollar hit an all - time high against the Euro of €79.56
Juliana Roadley, CommSec Market Analyst
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