Australian Stock Market Report –Afternoon 5/28/13

MARKET CLOSE REPORT

(4.30pm AEST)

Investors have pushed the market slightly higher for the first time in six sessions, with the All Ordinaries Index (XAO) up by a modest 0.2 per cent or 12 pts to 4950.6.The moves have been indecisive so far this week, with the closure of US and UK markets due to holidays overnight.

Most sectors rose today, with the underperforming miners continuing their tough run for the fourth straight day, slipping by around 4 per cent over that period. The world's biggest miner, BHP Billiton (BHP) eased by 0.1 per cent, while the smaller Rio Tinto (RIO), which is almost five times smaller than BHP on the market fell by 0.43 per cent.

The big four banks were mixed, with National Australia Bank (NAB) the lone loser amongst the majors. NAB dropped 0.38 per cent, making it six days of weakness. NAB is still the best improver of the banks this year, with its share price up 24.48 per cent since January 2013.

Queensland based financial services firm, Suncorp (SUN) rose by 1.7 per cent today after meeting with investors. SUN expects 7-10 per cent growth over the next two years and aims to maintain its 60-80 per cent dividend payout ratio. SUN shares are up 23.4 per cent this calendar year.

Gold and copper miner, OZ Minerals (OZL) slumped by 3.5 per cent after holding its Annual General Meeting (AGM) with shareholders. OZL has highlighted its continued focus on costs and efficiencies across its business. It expects cost reduction benefits to be felt next year. OZL shares are down 42.3 per cent this calendar year. Copper prices are down 8 per cent while gold is down 16.7 per cent in 2013.

Australia's second biggest airline, Virgin Australia (VAH) has moved a step closer to its planned acquisition of Tiger Australia today; however its shares still ended flat. The Foreign Investment Review Board (FIRB) confirmed it has no objections to the 60 per cent purchase of Tiger Airways Australia.

1.63bn shares changed hands today, worth $4.47bn. 487 stocks ended the day higher, 442 slipped, while 343 finished unchanged.

No major data is scheduled for release in Europe tonight, while an update on home prices and consumer confidence will both be issued in the US.

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