World Market Overview 05/30/2011
The Australian stock market recovered from early softness on Friday to end the week higher, as bargain hunters moved in to recover value in a heavily sold-down bourse. The benchmark S&P/ASX200 index was up 23.8 points, or 0.51 per cent, at 4,684, while the broader All Ordinaries index was up 25.2 points, or 0.53 per cent, at 4,760.3. On the ASX 24, the June share price index futures contract was 17 points higher at 4,686, with 27,543 contracts traded. After a flat opening, major materials stocks gained ground in morning trade.
BHP Billiton added 21 cents to $44.12, Rio Tinto gained 45 cents to $80.70 and Fortescue was seven cents higher at $6.40. Banking stocks were mixed, with ANZ and Westpac losing ground. Westpac fell 10 cents to $22.15 and ANZ lost eight cents to $21.99. Commonwealth Bank was up 57 cents at $50.97 and NAB added 22 cents to $26.37. Consumer discretionary was one of the best performing sectors, gaining 0.91 per cent, followed closely by consumer staples, up 0.81 per cent. In retail, Coles owner Wesfarmers was up 40 cents at $33.08, Woolworths added 13 cents to $27.28, while JB Hi-Fi gained 53 cents to $17.30.
Fisher & Paykel appliances said it returned to profit in the year to March, but its revenue for the latest 12 months fell 3.7 per cent from the year before to $NZ1.12 billion. Shares in Fisher and Paykel were up four cents at 46 cents. Resources services provider AJ Lucas Group downgraded its full year earnings guidance, and flagged asset sales to reduce debt which it says is unsustainable. Its shares were untraded at $1.35. Merger and acquisition activity continued on Friday, with online gaming firm Centrebet to be acquired by London-listed Sportingbet for $183 million. Centrebet shares were up up 11 cents, or 5.98 per cent, at $1.95. Preliminary National turnover was 2 billion shares, worth $5.9 billion, with 639 stocks up, 432 down and 387 unchanged.
The Australian dollar was higher late Friday, boosted by solid offshore demand for domestic equities, with leading miners and banks the focus of offshore buying interest. The currency moved in step with the benchmark S&P/ASX 200 closing up 23.8 points, or 0.5%, at 4684.0 after touching a four-day high of 4688.0. The Aussie touched a day's high of $1.0718, it highest since May 11. The Australian dollar was changing hands at $1.0680, up from $1.0597 late Thursday. Against the Japanese yen, the Australian dollar was at 86.51, down from 86.605.