Australian Stock Market Report – Afternoon 7/9/13

AFTERNOON REPORT
(5pm AEST)

The Australian share market managed to recover today, thanks to strong offshore gains and as investors chasing yield bought into the banks. The All Ordinaries Index (XAO) rose 68.9pts or 1.4 per cent today to 4866.5pts.

Macquarie Group (MQG) shares were a standout, rising almost 5 per cent to $43.51 while Westpac (WBC) was the best out of the big four.

Mining stocks were also generally firmer. Perth based gold miner Ramelius Resources (RMS) rose almost 24 per cent to 13c after posting a record June quarter production result as the company works to cut costs in order to offset the falling gold price.

In other news, Telstra (TLS) has flagged it will cut up to 170 jobs as it shifts part of its back office operations to India. TLS shares fell 0.6 per cent today to close at $4.76.

Flight Centre (FLT) shares today touched record highs, a week after the travel agency flagged it expects to post a record annual profit. FLT shares rose by 3.4 per cent to $43.84.

After the bell, Harvey Norman (HVN) made a cash offer for Singapore based investment company Pertama Holdings for 65c per share. Pertama distributes consumer electronics in Singapore and Malaysia and is set to be delisted from the Singapore Exchange. HVN shares rose 2.5 per cent today to $2.50.

In economic data today, the NAB business confidence index was released, showing an improvement from minus 0.6 points to plus 0.2 points in June. The business conditions index deteriorated from minus 4.3 points to minus 7.5 points - a four year low.

A total of 1/6 billion shares changed hands today, worth $4.6 billion. 558 were up, 336 were down and 313 were unchanged.

Ahead tonight, weekly chain store sales data is released in the US along with the employment trends report.

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