The local share market has started the new trading week, month
and quarter on a positive note thanks to strong gains offshore on
Friday night and better than expected Chinese manufacturing data.
The All Ordinaries Index (XAO) hit a high of 4460.7pts in early
trade but has come off that slightly at lunchtime in the East and
at 12.15pm AEST is firmer by 18.1pts or 0.4pct to 4438.1.
April is technically a good month for share markets, with
average monthly gains of 2pct before the age old adage "Sell in
May and go away" rings true for many investors. It was a very
positive start to the March quarter, with the local market adding
around 7pct - the best start to a trading year since 2006. US
markets posted their best start to a trading year in 14
On the share market mining stocks are faring best after
official data showed Chinese manufacturing rose to an 11 month
high in March. Index leader BHP Billiton (
) shares are firmer by 2.5pct to $35.47 while the materials
sector as a whole is up 1.8pct.
Financial stocks are mixed with Westpac (
) shares the strongest out of the big four, up 0.4pct to
Australia's largest carrier Qantas Airways (QAN) announced
over the weekend that jet fuel represents the company's largest
operational cost, with prices currently at their highest level
since 2007/08. As such the airline has increased fuel surcharges
for the second time in eight weeks. Qantas has also received a
broker downgrade today, sending its share price down 3.2pct in
early trade to $1.7275.
On the economic front, house prices rose 0.2pct in March
showing signs of stabilisation in the housing sector. It was a
Super Saturday in Sydney on the weekend, with the capital city of
New South Wales recording its best auction day since 2010.
The Australian dollar is weaker at lunchtime in the East,
worth US103.93c, £0.6501 and €77.93c.
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily