Australian Stock Market Report – Afternoon 5/29/13

AFTERNOON REPORT

(5pm AEST)

The Australian share market closed modestly higher on Wednesday, as gains from mining players offset weakness in the financial sector.

The All Ordinaries Index (XAO) rose 8.6pts or 0.2 per cent to 4959.2pts.

Financial stocks came under intense selling pressure after several brokers downgraded their forecasts on the sector. Shares in Westpac (WBC) and the Commonwealth Bank (CBA) came under the most selling pressure.

Meanwhile, there was a switch into mining stocks thanks to a weaker dollar and a broker upgrade to the sector. Shares in Fortescue Metals Group (FMG) rose 4.1 per cent to $3.53.

Companies exposed to currency fluctuations did well as the Aussie dollar continued to fall against the greenback. Shares in healthcare providers CSL (CSL) and Cochlear (COH) were firmer as was building products supplier James Hardie (JHX), which rose 1.5 per cent to $9.99.

Wesfarmers (WES) today announced capital expenditure for the current financial year will be between $1.5-$1.7 billion.

Independent financial services company Perpetual Limited (PPT) increased its stake in Echo Entertainment Group (EGP) to 10.15 per cent today. It came as Crown Limited (CWN) sold out of its 10 per cent stake in EGP at a discount. PPT rose 2.6 per cent to $43.04 while EGP was down 0.7 per cent to $2.97 and CWN was up 0.9 per cent to $12.95.

On the market overall, a total of 1.7 billion shares were traded, worth $5.6 billion. 491 were up, 440 were down and 361 were unchanged.

At 5pm AEST the SFE 200 Futures Index was at 4981, up 16pts.

No economic data is scheduled for release tonight in the US.

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