Market Wrap: Shares rally to third week of gains

Market Reports

Shrugging off negative leads the Australian share market finished the day 0.5 per cent stronger, fuelled by gains in the health and energy sectors. Almost all sectors closed in positive territory, with the major banks and miners finishing the week stronger while the telco’s closed in the red. New highs were hit by oil and gold overnight. The Australian dollar continued its record run, hitting through the 105 US cent mark.  

The S&P/ASX200 Index rose 32 points to close at 4,941 while for the week it advanced 79 points. On the futures market, the SPI is up 26 points.

To the US, on Wall Street, the DOW Jones Industrial Average was up 33 points over the four trading days this week. The S&P 500 Index was up 1 point, NASDAQ was up 7 and the 100 Index was down 10.

Company news: NBN Co today confirmed that Telstra Corporation Ltd (ASX:TLS) will be one of the first 12 telco retailers to participate in customer trials for the National Broadband Network. Singapore Telecommunications Ltd (ASX:SGT)-owned Optus, AAPT, iiNet and Internode are also among the retail service providers who will take part in user trials across the first five NBN release sites in Australia. NBN Co's head of product development and sales, Jim Hassell, say this testing phase is a critical step in building the network and comes ahead of the September launch of commercial broadband services. Shares in Telstra slipped 0.35 per cent to close at $2.83.

The head of Australia and New Zealand Banking Group (ASX:ANZ), Mike Smith, has forecast that interest rates will remain where they are for the short term. Speaking at a Trans-Tasman business lunch in Sydney Mr Smith said a strong Australian currency is "doing the work" for the nation’s central bank and keeping a cap on inflation. Mr Smith also admitted that an out-of-cycle rate rise by ANZ would be very difficult to do and confirmed that he cannot see a need for it at the moment. Shares in ANZ firmed 0.21 per cent and closed at $24.15 today.

Amid Japan’s nuclear crisis, Energy Resources of Australia Ltd’s (ASX:ERA) Ranger uranium mine looks to be in for a lengthy approval process. Traditional Aboriginal landowners have now gone to the United Nations to outline their opposition to the development of one of Australia’s largest underdeveloped uranium resources.     

Only hours after ASX Ltd (ASX:ASX) and the Singapore Exchange today officially abandoned their $8 billion merger, Shadow Treasurer Joe Hockey has slammed Federal Treasurer Wayne Swan for a “bungled decision-making process” that led to the rejection of the deal that has, in Mr Hockey’s option, increased Australia’s sovereign risk.    

Best and worst performers: Most in positive territory with Health Care coming in at top spot as the best performing sector, advancing 149 to close at 9,187. The only sector to close in the red was Telco Sevices, easing 3 points to close at 967 points.
The best performing stock in the S&P/ASX200 was Elders shares gained 7.84 per cent to close at $0.55. Shares in Lynas Corporation and Primary Health Care ended the week stronger. The worst performing stock was Ausdrill, dropping 4.94 per cent to close at $3.66. Shares in Emeco Holdings and Paperlinx also closed in the red today.

In commodities, gold is trading at $US1,467 an ounce and is up $39.15 on the week. Light crude is up 97 cents up at $US111.27 a barrel.

The Australian dollar is trading at $US1.0519 cents, and is up $US0.0131 on the week.


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