Boosted by strong offshore leads the Australian share market added 93 points today, pulling it 154 points higher for the week. Stocks shot up at open and climbed more than 2 per cent throughout the day led by strength in resources, energy and financials. It was a very positive end to the week ahead of the US non-farm payrolls tonight.
The S&P/ASX200 Index rallied 93 points to close at 4,163. For the week, the index gained 154 points. On the futures market, the SPI is 111 points stronger.
Wall Street, over the four trading days this week: The Dow Jones Industrial Average was 210 points higher, the S&P 500 Index was 34 points higher, Nasdaq was 91 points higher and the 100 Index was 79 points higher.
Economic news
A read of employment, orders and new business in Australia’s construction industry has fallen to more than a two year low. The Australian Industry Group and Housing Industry Association's performance of construction index dropped 2.1 points to 30 points in September. It was the index’s 16th consecutive month below 50, the level that indicates contraction.
Company news
Shares in all the big four banks added value today, on the same day a report revealed ANZ Banking Group (ASX:ANZ), Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corporation (ASX:WBC) and National Australia Bank Limited (ASX:NAB) together spent more than $200 million on advertising in the last financial year. Data by Nielsen showed the 19 per cent jump in spending from the year before as they vied to attract customers and offset the impact of an interest rate hike. The home loan front has also seen competition heat up this week, Westpac announced yesterday it was offering $1,000 cash back for new home loan applications. Shares in Westpac Banking closed 2.46 per cent stronger today at $21.24.
Shares in Qantas Airways Limited (ASX:QAN) lifted today despite a turbulent week for Australia’s biggest airline. The Transport Workers Union called off stoppages planned for this afternoon, though Qantas said it was too late as contingency plans had already forced the airline to cancel flights. The unions again today denied that they were behind threatening letters and death threats that this week hit the headlines after they were sent to Qantas management. Shares in Qantas lifted 3.46 per cent, closing the week at $1.495.
Shares in Foster’s Group Limited (ASX:FGL) slipped today as news emerged the brewer’s suitor, SABMiller, was in talks to be taken over by a suitor of its own.
Shares in Sims Metal Management Limited (ASX:SGM) jumped after the metal recycler said it would buy back up to ten percent of its stock to take advantage of the current market volatility.
Best and worst performers
Most sectors closed higher: The best performing sector was Energy, rising 395 points to close at 13,332. The worst performing sector was Telco Services, easing 10 points to close at 1,041 points. The best performing stock in the S&P/ASX200 was Panoramic Resources, shares gained 15.45 per cent to close at $1.42. Shares in Paladin Energy and Karoon Gas also finished stronger today. The worst performing stock was Sundance Resources, dropping 3.3 per cent to close at $0.44. Shares in Charter Hall Retail REIT and Qube Logistics also fell today.
Commodities
Gold is trading at $US1,661 an ounce and rose by $38.31 over the week.
Light crude is up $0.07 cents to $US82.66 a barrel.
The Australian dollar
The Australian dollar is buying 97.77 US cents and is up by $0.0119 on the week.
