Market Wrap: ASX soars before Australia Day weekend

Market Reports

Buoyed by the European Central Bank’s (ECB) multi-billion dollar stimulus plans the Australian share market soared 1.5 per cent today. After booking its biggest weekly loss in 18 months last week the local bourse recovered 3.7 per cent over this week. 

Earlier this week trade was supported by China’s better than expected growth numbers and strong mining production results. Today China was shown to have improved manufacturing sector activity with the HSBC Markit Flash PMI lifting in January but remaining in contraction territory. 
 
The ASX will now break for a long weekend with the Australia Day public holiday on Monday and trade resuming on Tuesday ahead of official quarterly inflation data on Wednesday.  
 
Figures
 
The S&P/ASX 200 index climbed 82 points today, widening the weekly gain of 203 points to finish the week at 5,502. 
 
The value of trades was $4.44 billion on volume of 705 million shares at the close of trade. 
 
The top three stocks by value were National Australia Bank Limited (ASX:NAB), BHP Billiton Limited (ASX:BHP) and Commonwealth Bank of Australia (ASX:CBA)
 
On the futures market the SPI is 81 points stronger. 
 
Wall Street
 
America’s major indexes have rallied over the shortened trading week after returning from the Martin Luther King Jr federal public holiday on Monday and ahead of the ECB’s stimulus announcement on Thursday: The Dow Jones Industrial Average has gained 1.7 per cent. The S&P 500 Index has jumped 2.1 per cent. The NASDAQ has jumped 2.4 per cent. The 100 Index has spiked 3 per cent. 
 
Company news
 
Shares in Santos Limited (ASX:STO) rose after delivering record sales revenue of $1.1 billion over the fourth quarter and $4 billion over the full 2014 calendar year. The oil and gas producer’s result was boosted by ramped up production from its PNG LNG project and the Cooper Basin. A rebound in the oil price also helped Santos today, firming the company’s stock 5.12 per cent to end the week at $7.80.  
 
Shares in Arrium Limited (ASX:ARI) declined after warning of a $1.3 billion write down and flagging the closure of one of two mining operations in South Australia. The iron ore miner also revealed it plans to cut its capital expenditure by 30 per cent over the following three financial years. Shares in Arrium were also hurt by the iron ore price trading at five year lows and the miner’s stock declined 8.89 per cent to end the week at $0.21.
 
Shares in The Reject Shop Limited (ASX:TRS) dropped 0.33 per cent after warning its first half results will disappoint. The discount retailer expects to deliver a net profit of between $12.7 and $13 million, down from almost $17 million the same time last year. 
 
Shares in Wesfarmers Limited (ASX:WES) fell 1 per cent after announcing its former Coles boss will depart. Ian McLeod has resigned from the conglomerate to step into the role of President and CEO of Bi-Lo supermarkets in America.
 
Best and worst performers
 
All sectors gained ground today: The best performing sector was real estate investment trusts, surging 3.3 per cent to close at 1,271. The sector with the smallest gains was consumer staples, adding 0.2 per cent to close at 9,418 points.
 
The best performing stock in the S&P/ASX 200 was WorleyParsons Limited (ASX:WOR), jumping 9.34 per cent to close at $9.95. Shares in Lynas Corporation Limited (ASX:LYC) and Liquefied Natural Gas Limited (ASX:LNG) also closed higher.
 
The worst performing stock was Arrium Limited (ASX:ARI), declining 8.89 per cent to close at $0.21. Shares in Steadfast Group Limited (ASX:SDF) and Skilled Group Limited (ASX:SKE) also closed lower. 
 
Commodities 
 
The price of gold is buying $US1,297 an ounce, up $37.62 over the week. 
Light crude is $1.47 lower at $US46.37 a barrel. 
 
Currencies
 
The Australian dollar is buying $US0.798, down $0.0255 over the week. 

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?