Australian Stock Market Report - Closing
Local stocks managed to make it six wins in a row today, as investors shrugged off a weak offshore lead and focused on positive economic data. The All Ordinaries Index (XAO) gained 15.4pts or 0.3pct to 4868.8 while the S&P/ASX 200 Index (XJO) firmed by 16.2pts or 0.3pct to 4784.
Financial stocks were mixed, with the Commonwealth Bank (CBA) the best out of the big four. CBA shares rose 0.9pct to $50.94 while Westpac (WBC) firmed by 0.4pct to $23.15. The NAB (NAB) dropped 0.1pct to $24.44 while ANZ (ANZ) shares were off 0.3pct to $23.76. Macquarie Group (MQG) firmed by 1pct to $37.64.
Mining stocks managed to reverse earlier losses and close relatively flat. BHP Billiton (BHP) shares closed up 0.1pct to $45.38 while Rio Tinto (RIO) closed slightly lower at $87. Iron ore miner Fortescue Metals Group (FMG) fell 0.9pct to $6.72 while gold miner Newcrest (NCM) was firmer by 0.4pct to $41.46 even despite the Comex contract remaining depressed at US$1381.50 an ounce.
Energy stocks were well supported after South Korea announced that Korea Gas Corporation would buy 3.5 million metric tons of liquefied natural gas per year from Australia. Project operator Santos (STO) indicated the deal had not yet been finalised, however regardless its share price rose an impressive 2.9pct to $12.97. Wooodside Petroleum (WPL) shares gained 0.3pct to $43.40 while Caltex (CTX) was up 0.6pct to $14.39.
Virgin Blue Australia (VBA) shares added 5.9pct to $0.45 as the Australian Competition and Consumer Commission (ACCC) gave the budget airline conditional approval in its plans to tie up with Air New Zealand (AIZ) and Etihad Airways. Shares in AIZ gained 6.2pct to $1.12 while Qantas (QAN) fell 2.6pct to $2.65.
Telstra (TLS) shares fell 0.7pct to $2.75.
Economic data released today revealed Corporate Australia held a record $271.4 billion in cash and deposits as at September. As a proportion of total financial assets, companies held 30.7pct of financial assets in cash, the highest in 11 years.
Super fund holdings of cash assets rose to a record high $162.9 billion in the September quarter. The proportion of super funds (pension funds) assets held in cash remained unchanged at 15.4pct in the June quarter, well above the decade average of 9.2pct.
The financial wealth of Australians rose sharply in the September quarter, largely due to the 7.2pct rise in equity markets. Net financial assets of households rose by 8pct after sliding by 8.7pct in the June quarter.
Per capita financial wealth rose by over $3,000 to just under $44,000 in the last quarter. Financial wealth is down 17.8pct below the record set in late 2007.
In seasonally adjusted terms imports rose by 4pct in November supported by an 8pct lift in capital goods imports.
The Australian dollar ended the day’s trade weaker against the major currencies and at 4pm AEDT was worth US98.61c, £0.6342 and €74.66c.
On the market overall, a total 2.75 billion shares, worth $5.95 billion were traded. 591 were up, 512 were down and 386 were unchanged.
At 4,15pm AEDT on the ASX24, the March futures contract was at 4782, up 12pts.
Ahead tonight, housing starts, the current account balance and the Philadelphia Fed Index are released in the US.
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