Market Wrap: Aus shares close 0.26% higher

Market Reports

by Carolyn Herbert

Considering Brexit occurred just a week ago, investors have seemed to have forgotten all about it with shares rallying for a third straight session. After strong leads from US markets, the local bourse jumped at the open but ran out of steam towards the session before closing 0.26 per cent higher. The materials space led by the big miners was the star performer today and we saw gold stocks bounce back from yesterday’s losses.

Today, the S&P/ASX 200 index closed 13 points higher to finish at 5,247. Over the week the index gained 133 points.

The value of trades was $4.7 billion on volume of 735 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA) and ANZ Banking Group (ASX:ANZ)

On the futures market the SPI is 28 points up.

US Markets

Looking at Wall Street, US major indexes have gained over the four trading days this week: The Dow Jones Industrial Average has added 2.95 per cent. The S&P 500 Index has added 2.9 per cent. The NASDAQ has added 2.8 per cent. The 100 Index has gained 3 per cent.

Economic news

The price of housing is still getting hotter in Sydney and Melbourne, albeit at a slower rate. According to latest figures from CoreLogic, national housing growth decreased to 0.5% per cent for June. Sydney still remains the hottest market, jumping 1.2 per cent, compared to Melbourne’s 0.8 per cent. Perth and Darwin were the only states to move backwards in terms of house prices.

Also in economic news, the latest Performance of Manufacturing index has shown a rise of 0.8 per cent in June, to 51.8. This represents 12 months of expansion in Australia’s manufacturing sector.

Company news

Mesoblast Limited (ASX:MSB) has announced plans for an early data read out on its Phase 3 chronic heart failure trial. The company says existing cash reserves of approximately US $80 million will provide operational runway for 12 to 15 months. Shares in Mesoblast closed 15.35 per cent higher at $1.24.

Woolworths Limited (ASX:WOW) has postponed the final bid deadline for its hardware business sale following the ACCC’s decision to extend industry consultation regarding the deal.

Growthpoint Properties Australia Limited (ASX:GOZ) has announced the details relating to its takeover bid to acquire GPT Metro Office Fund.

Best and worst performers

The best performing sector was Materials adding 2.1 per cent to close at 8,194. The worst performing sector was Financials excluding REITs, losing 0.4 per cent to close at 6,327 points.

The best performing stock in the S&P/ASX 200 was Mesoblast, rising 15.35 per cent to close at $1.24. Shares in Evolution Mining and St Barbara also closed higher.

The worst performing stock was IPH, dropping 4.21 per cent to close at $6.15. Shares in Fairfax Media and Beach Energy also closed lower.

Commodities and the dollar

The price of gold is trading at $US1,332 an ounce, and is up $39.77 over the week.
Light crude is down $1.48 at $US48.40 a barrel.
The Australian dollar is buying $0.7446 and is up 0.5 cent over the week.

Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.