NEWS - Financial Markets |
 |
Comment |
Aust stocks climb 1.6% on Wall St rally
Published 10:10 AM, 29 Sep 2009 Last update 4:15 PM, 29 Sep 2009
By a staff reporter
The Australian sharemarket has posted its highest close for a year, buoyed by the federal government’s improved budget deficit forecast and stronger overseas markets overnight.
By the 1615 AEST official close, the benchmark S&P/ASX200 index climbed 1.61 per cent to 4,753.10 points, while the broader All Ordinaries index lifted 1.50 per cent to 4,747.20 points.
The market received a lift after the federal government announced a final budget deficit of $27.1 billion for the 2008-09 financial year, a $5 billion improvement on its original forecast.
According to CMC Markets’ David Taylor, positive US and European markets also lent support to the bourse
“The market was encouraged by a lift in US and European markets overnight. In addition, there was buying activity in commodities markets as the US dollar lost ground and the Yen strengthened,” Mr Taylor said.
The big four banks ended the session in the black, with ANZ Banking Group advancing 1.64 per cent to $24.73, Commonwealth Bank of Australia finding 2.07 per cent to $52.10, National Australia Bank rising 2.02 per cent to $31.22 and Westpac strengthening 1.26 per cent to $26.43.
Australia's largest investment bank, Macquarie Group, cut some gains after rising 2.33 per cent in afternoon trading. Macquarie shares ended the session 0.82 per cent stronger at $57.35.
The mining sector was also stronger, with Australia's two major miners both making steady gains. BHP Billiton increased 2.39 per cent to $37.99, while Rio Tinto improved 1.73 per cent to $59.67.
Fellow iron ore miner Fortescue Metals lost its early gains to slip underwater, losing 0.25 per cent to $3.90.
Gold miners ended the session mixed after tracking the broader market for most of the day.
Lihir Gold slipped 0.35 per cent to $2.82, Sino Gold Mining gained 0.92 per cent to $6.55, and Newcrest Mining grew 1.07 per cent to $31.93.
Oil miners were also stronger after oil prices rose, with investors hoping an economic recovery will spur energy demand.
Woodside Petroleum climbed 0.19 per cent to $51.90, Oil Search firmed 2.41 per cent to $6.35, and Santos jumped 1.89 per cent to $15.05.Another strong sector was retail, with JB Hi-Fi leading the pack.
Harvey Norman lifted 1.90 per cent to $4.27, while David Jones picked up a healthy 0.35 per cent to $5.73, JB Hi-Fi edged up 2.19 per cent to $19.58, Coles owner Wesfarmers put on 1.53 per cent to $26.49, and Woolworths strengthened 1.27 per cent to $29.33.
Market heavyweight, Qantas, gained 1.43 per cent to $2.83 after news its passenger numbers for August had enjoyed a six per cent increase.
Also in the news, Austar climbed 2.09 per cent to $1.22 after the media group announced it had signed a deal with Fox Sports, enabling Austar customers to watch three Fox Sports channels in high definition.On Monday, the Australian sharemarket finished the day lower as fears about the sustainability of the economic recovery sparked a broad-based sell-off.
The benchmark S&P/ASX200 index closed down 35.9 points, or 0.76 per cent, at 4677.4 points, while the broader All Ordinaries index lost 37.9 points, or 0.8 per cent, to 4676.9 points.
Contribute to the Conversation
To contribute your comments for possible publication, please Login or Register.
Preference will be given to succinct contributions. We may contact you via email prior to publication.