Close Shares rose today, snapping a four-day losing spell, buoyed by a number of strong earnings results and as investors shopped around for bargains among oversold stocks.
At the close, the benchmark S&P/ASX200 Index was up 35.9 points, or 0.8 per cent, at 4356, while the broader All Ordinaries Index rose 32.8 points, or 0.8 per cent, to 4389.4.
Among the main sectors, financials rose 1.2 per cent, energy gained 1.3 per cent, while materials underperformed, inching up just 0.2 per cent.
What you need to know
- The dollar inches up to 88.77 US cents
- Europe stocks open strongly, FTSE up 0.7%
- Asian stocks edge up as gloom lifts
- Gold hits 8-week high at $US1241
- Oil extends gains to near $US73
- Dow futures are 13 points higher at 10,060
"Offshore markets produced a mixed lead but given continued uncertainty about the election outcome and lower base metal prices, the materials sector was the big weight on our market," said Matt Lewis from CMC Markets. "Today’s gains were less about Wall Street and more about investors looking for value among some of the benchmark’s outperformers."
It was another big day on the company earnings front, however, with results out this morning from Woolworths, Insurance Australia Group, Amcor, AGL, Virgin Blue, Toll Holdings, Santos, Crown, Skilled, Macquarie Telecoms, Ramsay, Tatts, Centrebet, Transfield, Cabcharge, IOOF, Fortescue and Iluka. For all today's earnings results, click here.
Woolies rallies
Top grocer Woolworths was a standout performer, rallying in heavy volume on a fresh share buyback plan. Woolworths shares jumped as much as 7.4 per cent to a five-month high of $28.89 in heavy volume trade, but later retreated, closing 64 cents, or 2.4 per cent, higher to $27.54.
Macquarie Private Wealth adviser Helen Spencer said Woolworths had posted ‘‘a quality result, in line (with expectations)’’.
‘‘But the big sweetener for the Woolworths shareholders is the announcement of a $700 million off-market buy-back. That’s certainly helping to push the share price higher.’’
She said banks gained ground from yesterday’s ‘‘woeful performance’’ with Westpac leading the charge.
Westpac leads banks
Westpac jumped 49 cents, or 2.3 per cent, to $21.55 after losing 4.6 per cent during the last two days.
ANZ added 28 cents, or 1.3 per cent to $22.47, National Australia Bank put on 24 cents, or 1.1 per cent, to $23.01 and Commonwealth Bank firmed 68 cents, or 1.4 per cent, to $48.98.
Ms Spencer said Suncorp-Metway was a bright spot, with the stock continuing to climb on the back of its better-than-expected annual profit, reported yesterday.
Suncorp closed 29 cents, or 3.6 per cent, higher at $8.26.
Retailers ended in positive territory with the exception of David Jones. The department store owner fell 5 cents, or 1 per cent to $4.88.
Fortescue surges
BHP Billiton lost 5 cents to $37.39, and Rio Tinto added 15 cents to $69.60. But Fortescue Metals Group surged 16 cents or 3.7 per cent to $4.50 after posting a 14 per cent rise in annual net profit on the back of higher production and sales prices for the steelmaking commodity.
Major gold stocks advanced, with Lihir Gold firming 7 cents, or 1.6 per cent to $4.47 and Newcrest Mining jumping 50 cents, or 1.4 per cent, to $35.99.
AGL Energy lost 27 cents or 1.8 per cent to $14.95 after reporting a 13.2 per cent rise in underlying full year profit, and saying the cool start to winter in southern states should boost growth in the current financial year.
Major media stocks advanced, with Fairfax Media up 3 cents, or 2.3 per cent, to $1.36. News Corp firmed 1 cent to $15.61 and its non-voting scrip fell 4 cents to $13.81.
Telstra finished steady at $2.76.
Virgin back in black
Virgin Blue Holdings soared 3.5 cents, or 12.5 per cent, to 31.5 cents after returning to profitability in 2009/10 and announcing an alliance with Abu Dhabi-based Etihad Airways. Rival Qantas eased 2 cents to $2.50.
In other earnings news, casinos operator Crown returned to profitability and said it will stay focused on refurbishing its Australian casinos. Crown’s shares gained 25 cents, or 3 per cent, to $8.49.
Packaging giant Amcor firmed 1 cent to $6.40 after its profit result missed market expectations. But the company said it is well positioned for strong earnings growth.
IOOF Holdings said its potential acquisition of AXA Asia Pacific Holdings’ (AXA) North wealth.net platform would be ‘‘a marriage made in heaven’’ and would accelerate its earnings growth. The wealth manager’s stock gained 13 cents, or 2.1 per cent, to $6.38.
Virgin Blue Holdings was the top traded stock by volume, with 68.5 million shares changing hands for $20.8 million.
Preliminary national turnover reached two billion shares, worth $7.3 billion, with 564 stocks trading up, 461 down and 347 unchanged.
- For market data by sector, click here
- For share price information, click here
- For the latest currency movements, click here
- For the season's earnings results, click here
AAP, with BusinessDay