Australian Stock Market Report – Afternoon 11/25/13

AFTERNOON REPORT
(5pm AEDT)

The Australian share market gained for a second session today, on the back of Wall Street notching up another record high on Friday night. By close of trade, the All Ordinaries Index (XAO) was firmer by 15.8pts or 0.3 per cent to 5346.1 points.

Most sectors finished higher, although there was a small pullback in the energy sector which dropped 0.1 per cent on a weaker oil price. A global deal to lift sanctions against Iran is expected to unleash a flood of oil onto world markets by next year, with crude output expected to pick up in Libya, Iraq and North America. Iran's exports have slumped by over 60 per cent over the past two years due to sanctions. The Nymex contract dropped a further one per cent during Asian trade to US$93.89 a barrel.

Elsewhere, the financial sector was firmer by 0.3 per cent while the materials sector also rose by 0.3 per cent. Industrials stocks added 0.7 per cent.

The three way tie for Warrnambool Cheese and Butter Factory (WCB) continues, with WCB endorsing a sweetened takeover bid from Canadian firm Saputo. The deal values the Aussie dairy producer at $514.9 million, or $9.20 per share and is conditional on Saputo acquiring more than 50 per cent of the company. WCB shares closed higher by 2 per cent to $9.23 while former suitor Bega Cheese (BGA) fell 0.9 per cent to $4.67.

On the market overall, a total of 1.8 billion shares changed hands, worth $3.9 billion. 470 were up, 494 were down and 358 were unchanged.

At 4.30pm the SFE 200 Futures contract was at 5375, up 26 points or 0.5 per cent.

The Australian dollar lost further ground during the day's trade and at 4.30pm AEDT was buying US91.47c.

Ahead tonight, pending home sales data, the Markit flash services gauge and the Dallas Federal Reserve manufacturing index are released.

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