Australian Stock Market Report – Afternoon 11/22/13

EVENING REPORT
(5pm AEDT)

The Australian sharemarket managed to benefit from the strength in offshore stocks overnight, with the All Ordinaries Index (XAO) rising by 0.9 per cent and closing back above the 5300pt mark. US shares have more than doubled in value from the lows hit in 2008, closed above 16,000pts for the first time on record overnight and the DOW is 22 per cent firmer this calendar year.

Here's a quick wrap of the market's performance this week. The All Ordinaries Index slipped by 1.2 per cent, making it the worst week for domestic shares in about 1.5 months. The telcos were the biggest losers after falling by 2.5 per cent. The energy players also struggled, slumping by 2.3 per cent. The miners dropped by 1.3 per cent, consumer discretionary stocks and the financials lost 1.3 per cent and the industrials eased by 0.6 per cent.

The energy sector surged by 1.3 per cent, with Santos (STO) up 1.7 per cent while the larger Woodside Petroleum (WPL) edged higher by 0.7 per cent. The banks jumped by 0.5 per cent, while BHP Billiton (BHP) and Rio Tinto (RIO) gained by 0.7 per cent.

The Australian dollar has continued to fall, and is currently a full US2c lower than a week ago (US91.9c). The Reserve Bank Governor, Glenn Stevens has been talking down the Aussie, Chinese economic data disappointed yesterday and the Fed minutes showed that a December taper can't be written off just yet.

By the close of business, 1.72 billion shares were traded, worth $4.19 billion. 556 stocks ended higher, 397 were weaker and 340 were flat.

Tonight in Europe, Germany's Final quarterly GDP reading will be out at 6pm AEDT. The market is expected a modest 0.3 per cent expansion in the euro zone's biggest economy. A business confidence reading will also be issued.

In the US, FOMC member George is delivering a talk at 12.40am AEDT. No major market moving data is scheduled for release this evening in North America.

Next week, private sector credit, new home sales, business investment and construction (which plug straight into the GDP calculations) and long run population projections (up until 2101) will be issued.

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