Australian Stock Market Report – Afternoon 5-8-13

AFTERNOON REPORT

(5pm AEST)

The ASX 200 Index closed at a near five year high today, as investor sentiment was boosted by record closes on the US Dow Jones and S&P 500 Indices, as well as better than expected Chinese trade data. The ASX 200 closed just shy of 5200 points, its best finish since June 30, 2008.

Financial and mining stocks led the way, with Fortescue Metals Group (FMG) closing higher by 5.4 per cent to $3.89.

Biopharmaceutical company CSL Limited (CSL) fell 5.2 per cent to $59.61 after rival company Baxter failed to meet its goals in its Alzheimer's study. The trial was to test the effectiveness of a drug called IVIG on Alzheimer's patients. CSL manufactures the same drug under a different brand name and had Baxter's trial been successful, there would have been a positive flow on effect to CSL.

Meanwhile, Seven West Media (SWM) rose 10 per cent to $2.30 after new CEO Don Voelte announced aggressive cost cutting measures and indicated "the worst" was behind the company. SWM still expects underlying earnings to fall between 2-4 per cent this year.

In economic news released today, the Chinese trade accounts recorded a $18.16 billion surplus (forecast was for a surplus of $15.05 billion) in April. Exports rose 14.7 per cent in the year to March (forecast +10.3%) while imports rose 16.8 per cent (forecast, +13.9 per cent). Over the year to April the trade surplus in China was US$274.9 billion, easing further away from the four-year high of $281.3 billion in the year to February.

On the market overall, a total of 1.88 billion shares were traded, worth $5.8 billion. 554 were up, 404 were down and 332 were unchanged.

At 5pm AEST the SFE 200 Futures market was at 5192, up 58pts.

The Aussie dollar remains below US102c following yesterday's rate cut by the Reserve Bank of Australia.

Ahead tonight, weekly data on housing lending is released in the US.

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