Stocks buoyed by banks, miners

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This was published 13 years ago

Stocks buoyed by banks, miners

Update The Australian stock market posted broad gains today on rising confidence about the outlook for the US and Chinese economies. The Australian dollar was hovering at just below 97 US cents.

The benchmark S&P/ASX200 Index ended the day up 46.1 points, or 1 per cent, to 4625.3 while the broader All Ordinaries Index was 43.7 points higher, or 0.9 per cent, at 4678.4.

Trading volumes were less than half the daily average, as a public holiday in New South Wales, the ACT and South Australia sidelining many local investors.

On a sector-by-sector basis, financials were up 1.3 per cent, while materials rose 1.1 per cent and energy stocks 0.9 per cent.

  • The Australian dollar slipped below 97 US cents
  • Asian stocks rise to a two-year high
  • Gold futures edge higher to $US1319 an ounce
  • Oil futures were steady above $US81 a barrel
  • Dow stock futures were up 2 at 10,770 points
  • Australian diary: calendar of the week's events

''The local market posted solid gains today helped by positive leads from the US over the weekend,'' Australian Stock Report head of research Geoff Saffer said.

''Banking was the strongest sector, while miners were also strong with base metal prices closing strongly on Friday.''

''The rest of the market saw a general bullish mood following positive US consumer data on Friday.''

Of the major miners, BHP Billiton gained 54 cents, or 1.37 per cent, to $40.00 and Rio Tinto added 78 cents to $78.08.

All four major banks closed the day higher, led by Commonwealth Bank which added 64 cents to $51.54.

National Australia Bank gained 45 cents to $25.45, Westpac rose 39 cents to $23.32 and ANZ was 17 cents higher at $23.68.

Gold glitters

Commodity prices remain strong, with gold setting a record high on Friday and oil settling at more than $US80 a barrel.

Among the energy stocks, Woodside Petroleum gained 67 cents to $44.97 and Santos rose 12 cents to $12.83.

Newcrest Mining, Australia’s biggest gold miner, continued to reap the benefits of record high gold prices, gaining 72 cents to $40.72.

Mr Saffer said copper prices, which act as an economic barometer, on Friday reached $8,000 a tonne for the first time in two years.

Among consumer staples, Woolworths added 64 cents, or 2.21 per cent, to close at $29.59.

Among the S&P/ASX 100, Rio Tinto led the gains, with Leighton Holdings a close second, adding 98 cents, or 2.99 per cent, to $33.81.

Paladin Energy fell the most among the top 100, losing 18 cents, or 4.79 per cent, to $3.58.

Preliminary market turnover was 1.8 billion shares changing hands for $2.7 billion, with 552 shares up, 474 down and 342 unchanged.

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Global optimism

Confidence about the health of the global economy was spurred in part by manufacturing data from the US on Friday showing factory activity was still expanding in September.

Personal income and consumer spending both rose more than expected in August, with incomes jumping by their fastest pace in eight months.

Strong Chinese manufacturing data also suggested the Asian superpower will keep importing commodities in large volumes from resource-based economies.

In the news

The TD Securities Melbourne Institute Monthly Inflation Gauge out today showed that in the 12 months to September, the measure rose 3.2 per cent, breaching the upper bound of the central bank’s two to three per cent inflation target band.

The Reserve Bank of Australia will meet tomorrow to decide whether to increase the overnight cash rate from the current 4.5 per cent. Markets rate the RBA a 3-in-4 chance of lifting its key cash rate to 4.75 per cent at the board meeting.

Agribusiness AWB said that its takeover suitor, Canada’s Agrium, had received clearance from the Australian Foreign Investment Review Board for its $1.24 billion all-cash offer for AWB.

AWB gained half a cent to $1.485.

On the Sydney Futures Exchange, the December share price index futures contract points grew 54 points to 4,640, on a volume of 21,927 contracts.

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