Australian Stock Market Report – Afternoon 3-27-13

MARKET CLOSE REPORT
(4.30PM AEDT)

The local market steadily improved throughout the session to end around its highest level of the day. The All Ordinaries Index (XAO) jumped by 0.9 per cent, which has completely made up for yesterday's tumble.

The gains can be attributed to relatively strong performances in most global markets overnight. Despite the rise, many investors are likely to remain concerned about Cyprus and the precedence this week's bailout deal could set for future Eurozone bailouts.

It was the underperforming mining sector that led the gains today, with BHP Billiton (BHP), Rio Tinto (RIO) and Fortescue Metals Group (FMG) all rising strongly. The mining sector is down by more than 9 per cent this month.

The Australian competition watchdog has given the final green light for both Qantas (QAN) and Emirates to form a global alliance. Emirates has consistently made it on the list of the world's best airlines. QAN shares rose by 2.33 per cent or 4c to $1.76,taking the gains for 2013 to 18 per cent.

One of Australia's biggest insurers, QBE Insurance (QBE) rose by 3.71 per cent or 48 cents to $13.42 after holding its Annual General Meeting (AGM) with shareholders today. The board admitted that 2012 was a disappointing year, largely due to a tough environment in the U.S. Superstorm Sandy and a number of droughts hurt its bottom line. On a positive note, QBE has indicated that it's on track to meet its financial goals for the year. Since the start of January 2013, QBE shares are up 23 per cent.

Today was a relatively quiet day of trade in relation to volume. There were 1.69B shares traded worth $4.1B. 491 stocks rose, 442 ended in the red while 360 closed flat.

Looking ahead, German consumer climate numbers will be issued at 6pm (AEDT), along with Italian retail sales at 9pm (AEDT). The final quarterly GDP report is scheduled for release in the U.K at 8.30pm (AEDT).

In the U.S, pending home sales are expected to show a slight fall in sales over February at 1am (AEDT). Two Federal Reserve members will be delivering talks while weekly crude oil inventories are out at 1.30am (AEDT). This gives markets an idea of oil stockpiles at U.S companies in the previous week.

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