Australian Stock Market Report – Afternoon 9/10/13

AFTERNOON REPORT
(5pm AEST)

The Australian share market performed strongly today, as data showed Chinese production was at its highest levels in 17 months and Australian business confidence reached a two year high.

The All Ordinaries Index (XAO) added 0.4 per cent to 5198 points while the ASX 200 closed above 5200 points.

Investors were also encouraged by a positive lead from Wall Street on reduced fears about a US led military strike on Syria.

Financial and mining players were well supported while the energy sector closed flat.

Struggling rural services company Elders (ELD) rose 10.5 per cent to 10.5c after announcing it would axe 150 jobs, or 10 per cent of its workforce, in a bid to reduce costs by up to $25 million by April next year.

Meanwhile salary packaging company McMillan Shakespeare (MMS) fell 2.7 per cent to $12.34 a day before it releases its Full Year results. MMS rose more than 10 per cent in the lead up to the federal election on expectations a Coalition government would hose down ALP proposed changes to the fringe benefits tax.

The NAB business confidence index lifted from minus 3.4 points to a 27-month high of +5.7 points in August. The business conditions index improved from minus 7.1 points to minus 6.3 points. The survey was conducted from August 20 to September 3, that is, after the election date was announced but before the poll was held.

The positive data pushed the AUD to US92.6c.

On the market overall, a total of 1.6 billion shares changed hands, worth $4.2 billion. 474 were up, 440 were down and 355 were unchanged.

At 5pm AEST the SFE 200 Futures Index was at 5206, up 14 points.

US weekly chain store data is released tonight. The Dow Futures is pointing to a flat start for Wall Street.

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