Shares cap best week in a year

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 13 years ago

Shares cap best week in a year

Close Shares have posted modest gains for the day but capped their best weekly performance in a year as investors regained some confidence in the outlook for the global economy.

At the close, the benchmark S&P/ASX200 index was up 8.5 points, or 0.2 per cent, at 4541.2, while the broader All Ordinaries index had risen 14.6 points, or 0.3 per cent, to 4577.6.

For the week, the ASX200 rose 3.9 per cent - its first weekly advance in a month and the biggest increase since the last week of August 2009.

Among the major sub-indexes, financial shares were down 0.3 per cent for the day, while minerals were up 0.5 per cent, gold stocks were 4.1 per cent higher and industrials were 1.6 per cent ahead.

need2know:
- Asian shares edge up for third day of gains
- The dollar falls back below 91 US cents
- Oil slips to $US74 ahead of US jobs data
- Gold is little changed at $US1250
- Dow futures are 14 points lower at 10,295

After a steady rise to 4558.7 in early trade, its best since August 10, the S&P/ASX200 pared gains reflecting a move to consolidate, as global market await further key US data due later today.

    "We've had a couple of good rises so I think we're just taking a breather," said F.W. Holst research manager David Spry. "I think we're likely to ebb and flow today."

    Australian investors are unlikely to take bold positions ahead of the US non-farm payrolls data, with global markets expected to watch closely the latest indicator on whether the world's largest economy is recovering.

    Economic strength buoys

    Advertisement

    RBS Morgans director of equities Bill Chatterton said the market performed reasonably well this week on the back of strong GDP domestic figures and good profit season reports. He said an unresolved federal election has left investors with a sense of caution.

    ‘‘The fact that we haven’t got a solution in the federal election has been an issue - there’s no question about that - from a local perspective and from an international perspective,’’ Mr Chatterton said.

    All major banks finished the day’s trading in negative territory. ANZ fell 14 cents to $23.29, Commonwealth Bank lost 35 cents to $51.57, National Australia Bank dropped one cent to $24.10 and Westpac finished 15 cents lower at $22.50.

    Andean peaks

    Shares of Andean Resources jumped over 30 per cent before trading was halted at the company's request. Canadian miners Goldcorp and Eldorado Gold both made bids for the firm with Goldcorp's offer valuing the company at $US3.23 billion.

    Making news, miner Fortescue Metals Group rejected a claim for damages from its third largest shareholder in relation to a 2006 loan agreement. Fortescue was down nine cents, or 1.84 per cent, at $4.80.

    Orica had also lost ground, falling 71 cents, or 2.8 per cent, to $24.91.

    The two big miners finished strongly. Rio Tinto rose 67 cents, or 0.9 per cent, to $73.79, while BHP Billiton gained 1 cent to $38.33.

    The retailers posted mixed results, with Wesfarmers adding 31 cents, or 0.9 per cent, to $33.60, while Woolworths fell 9 cents to $28.38.

    Focus on Wesfarmers

    Mr Chatterton said Wesfarmers was a company to watch after its strong performance.

    ‘‘Their result during the reporting season was extremely good and I think there’s a renewed focus on that company and just how resilient the earnings are,’’ he said. ‘‘It’s a very good steady story that will, in a somewhat difficult environment it will, I think, maintain a lot of growth.’’

    David Jones added 4 cents to $5.19, JB Hi-Fi gained 4 cents to $21.43 and Harvey Norman rose 9 cents to $3.57.

    Newcrest was up 65 cents, or 1.7 per cent, at $38.72.

    Nufarm faces class action

    In other news, agricultural chemicals supplier Nufarm is likely to face a class action from shareholders alleging that it engaged in misleading conduct relating to profit forecasts.

    Law firm Slater & Gordon said that it was nearing completion of an investigation into Nufarm’s profit guidance.

    The investigation followed approaches by Nufarm shareholders shortly after Nufarm halved its profit guidance in July. Nufarm shares fell 11 cents, or 3.1 per cent, to $3.39.

    The most traded stock by volume was Abm Resources, with 73.38 million shares worth $2.73 million changing hands. Intoll securities rose 0.5 cent, or 14.71 per cent, to 3.9 cents.

    Preliminary national turnover was 2.16 billion securities worth $5.2 billion, with 631 stocks up, 431 down and 358 unchanged.

    AAP, with BusinessDay

    Most Viewed in Business

    Loading