Faith returns: Aus shares close 3.34% higher

Market Reports

by Carolyn Herbert

It has been an absolutely stellar session for the Australian share market today, rocketing at the open and continuing on an upward trajectory throughout the session before closing 3.34 per cent higher. In what was an unexpected rally after the election of Donald Trump as the next US President, the materials space has led the charge with the big miners BHP and Rio Tinto the star heavyweights for the session both closing over 8 per cent higher. The big banks also followed Wall street’s lead and surged between 3 and four per cent, with Macquarie Group jumping more than 8 per cent due to its US exposure.

The S&P/ASX 200 index closed 172 points up to finish at 5,329.

The value of trades was $ 8.2 billion on volume of 1.12 billion shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Westpac Banking Corporation (ASX:WBC) and Rio Tinto Limited (ASX:RIO).

On the futures market the SPI is 180 points up.

Economic news

The latest housing finance figures from the Australian Bureau of Statistics have jumped for the month of September, showing a renewed interest in the Australian housing market. The value of loans surged 4.6 per cent to $12.42 billion for the month in seasonally adjusted terms.

Company news

Westfield Corporation (ASX:WFD) has reported a 4.8 per cent increase in year on year growth in its flagship properties for the third quarter. In terms of development activity, the shopping centre giant has $3.7 billion of current projects returning an estimated yield of approximately 7 and 8 per cent. Shares in Westfield closed 1.85 per cent lower at $8.49.

Travel insurance company, the Cover-More Group Ltd (AX:CVO), has entered a strategic underwriting relationship with the Berkshire Hathaway Specialty Insurance Company’s Australian branch.

The Mitula Group Ltd (ASX:MUA) has announced that it is expecting its full-year revenue, in the 2016 financial year, to be around $28 million to $29 million. This is a 36% – 41% increase over the previous year.

LatAm Autos Ltd (ASX:LAA) has signed a co-marketing agreement with eBay Mexico to relases a new digital auto-classifieds product in Mexico.

Best and worst performers

The best performing sector was Materials adding 5.75 per cent to close at 9,682. The worst performing sector was REITs, losing 1.6 per cent to close at 1,280 points.

The best performing stock in the S&P/ASX 200 was Aconex, rising 13.74 per cent to close at $5.96. Shares in Sims Metals and Western Areas also closed higher.

The worst performing stock was Regis Resources, dropping 9.37 per cent to close at $3.29. Shares in St Barbara and Saracen Minerals also closed lower.

Commodities and the dollar

Gold is trading at $US1,283 an ounce.
Light crude is $0.46 higher at $US45.34 a barrel.
The Australian dollar is buying $US0.7668.




 

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