Australian Stock Market Report – Afternoon September 17, 2014

Traders work on the floor of the New York Stock Exchange shortly after the market's opening in New York July 28, 2014. REUTERS/Lucas Jackson

 Buyers made several attempts at pushing local shares higher in early trade on Wednesday, although their efforts were brought to heel quickly. As lunchtime loomed on the east coast the market was again dipping into the red. The softer tone local came despite US share markets posting solid gains overnight with a growing sense that the US Federal Reserve will remain cautious about the process of increasing interest rates and any potential rise in 2015.

 Mining stocks were once again the reason the market hadn't fallen further into the red. There were several factors supporting the group including improved commodity prices. Base metal prices rose between as much as 1.9% in the last day with aluminium up the most and nickel the least. Gold prices rose for the second straight day with Comex gold futures rising to US$1,236.70 per ounce. Iron ore fell by US70c in the last day to US$84.50 a tonne after rising US$3.20 or 3.8% on the previous day. Another factor supporting the commodities complex was news from China. It had been reported that the People's Bank of China had provided RMB 500 billion, or USD 81.3 billion of liquidity to China's five largest banks in an effort to boost the prospects for China's economic growth. BHP Billiton, Rio Tinto and Fortescue Metals group had each risen as much 1% over the course of the morning before easing ahead of lunchtime.

 Retail stocks were in focus following results being released by Premier Investments (PMV). The retailer announced a10 per cent rise in underlying profit to $106 million, up from $96.1 million a year ago. However, net profit fell more than 58 per cent to $73 million, due to the previous $105 million reclassification of its stake in kitchen appliance maker Breville. PMV's outlook was upbeat and the group expects continued growth as it rolls out more Smiggle and Peter Alexander stores. PMV shares were ahead by more than 5 per cent at lunch time.

 Energy stocks were seeing varying levels of support after World oil prices rose in the last day. A weaker US dollar boosted the purchasing power of in Asia and Europe. OPEC Secretary General Abdallah El-Badri told reporters he expected the oil cartel to lower its oil output target to 29.5 million barrels per day (bpd) from 30 million bpd when it meets next in late November. OilSearch (OSH) shares were at $9.10 up 9 cents or 1 per cent.

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