Australian Stock Market Report – Afternoon January 9, 2015

Traders work on the floor of the New York Stock Exchange shortly after the markets open in New York November 7, 2014. REUTERS/Lucas Jackson (UNITED STATES - Tags: BUSINESS)

Market rallies to close near day's highs

 The local share market has wrapped up the last trading day of the week on a positive note, finishing close to the day's highs. The All Ords (XAO) jumped 80 points or 1.5 percent to 5,440, while the ASX 200 (XJO) climbed 84 points or 1.5 percent to 5,465.

 The Energy sector surged 3.2 percent, putting an end to a three-session losing streak. Woodside Petroleum (WPL) gained 3 percent to $37.05, while Santos (STO) improved by 5.3 percent to $7.69.

 The Materials sector rose by 2.3 percent, adding to yesterday's 0.6 percent gain. BHP Billiton (BHP) moved 2.7 percent higher to $29.16

 Telstra shares (TLS) finished at a fresh 13.5 year high of $6.07 per share. Australia's sixth largest company has improved for four consecutive years and has been helped by its close to 5 per cent dividend yield. TLS shares have doubled in value since the end of 2010.

 Qantas shares (QAN) ended down 1.6 percent to $2.50. The airline today announced that advertising executive and popular Gruen Planet personality Todd Sampson will join its board of directors on 25 February.

 In economic news, retail sales rose for the sixth straight month, up by 0.1 per cent in November. Annual growth of retail trade stands at 5.0 percent, above the decade-average growth rate of 4.3 percent. Annual growth of sales has been above average for over a year. Sales rose the most in Northern Territory, ACT and Tasmania.

 Overseas, Chinese inflation remains benign, leaving the door open for the authorities to stimulate the economy in coming months if the need permits. Producer prices fell by 3.3 per cent in the year to December (median forecast: 3.1 per cent decline). Consumer prices rose by 1.5 per cent over the year (median forecast: +1.5 per cent).

 The Aussie dollar has improved against the greenback, fetching 81.42 US cents.

 Ahead tonight, US non-farm payrolls (employment) data will be released.

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