Local stocks snapped a four day losing streak yesterday and
our market has started off well again today, after US and
European markets rallied on strong Chinese data and anticipation
of more good news out of China today.
After the U.S. market close the internet giant, Google
reported its 1st quarter 2012 results, these result beat the
street with Google reporting its profit increased 60pct. from the
same period last year, helped by more ad revenue, higher paid
clicks on its site up 39pct., even with the cost per clicks
The All Ordinaries Index (XAO) gained 22 points on the
At lunchtime, the All Ordinaries Index (XAO) was up 43 points
to 4,404 points. Once again we witnessed broad-based gains across
all sectors in the morning session. Firmer commodity prices
helping mining and energy stocks with the S&P/ASX 200
Materials sector up 2.07 pct. and the S&P/ASX 200 Energy
sector also higher up over 1.2 pct. While defensive stocks took a
back seat in morning trade, with the S&P/ASX 200 A-REIT
(property) sector adding 0.5 pct and utility stocks up 0.08 pct.
and Telstra Corporation Limited (TLS) down over 0.3pct to
Mining stocks were higher again after gains in base metals
prices on the London Metals Exchange (LME) ahead of the release
of China's official GDP, Gross Domestic Product report, due out
later today. Amongst the miners, BHP Billiton (
) firmed by 2 pct. to $334.58 while Rio Tinto Limited (
) added 2.9pct to $66.30 after its London share price rallied
over 4.5 pct. higher overnight.
The gold price closed higher in U.S. trade overnight and at
lunch was trading at US$1,677 per ounce. Newcrest Mining Limited
(NCM) still increased adding 1.2 pct. to $29.27 and OceanaGold
Corporation Limited (OGC) up 2.1 pct.
The S&P/ASX 200 Energy sector was up 1.2 pct helped by a
rebound in U.S. oil prices overnight. Woodside Petroleum Limited
(WPL) shares added 1.2 pct. to $34.65 and Santos Limited (
) rebounded 0.9 pct. to $14.12.
Financial stocks also did well. Shares in Macquarie Group
(MQG) were up 1 pct. to $28.20 while National Australia Bank
(NAB) increased by 0.6 pct. to $24.74. Australia and New Zealand
Banking Group Limited (ANZ) at $22.97. Insurance Australia Group
) announced this morning that its Malaysian joint venture
partner, AmG Insurance Berhad (AmG), had been given official
government regulatory approval to acquire Malaysian insurer
Kurnia for $480 million of which IAG will pay 49%. The deal is
still subject to shareholder approval, this deal with will make
AmG the largest general insurer in Malaysia, with 13pct. of
Malaysia's general insurance market. IAG share price increased by
1.5pct to $3.47.
In the industrial space, Toll road operator Transurban Group (
) said toll revenue for the March quarter rose 5.1 pct. from the
prior corresponding period to $230.6 million. The revenue
increase was helped by higher toll fees on some of its roads.
Transurban share price climbed 1.5pct. to $3.47. Seven Group
Holding (SVW) shares higher today, after its heavy equiptment
acquisition news yesterday up another 0.97pct. to $10.44.
The Australian dollar continued to rebound throughout the
morning, helped by the positive job data and is now at US104.20c
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