The All Ordinaries Index (XAO) followed the lead from the overseas markets and opened higher this morning up 20 points. By lunch time the market had reduced its early run and had only added 9 points, to 4,515, with small gains in most sectors.
The main indicator of the Australian Securities Exchange (bottom R) is seen in red shortly after the local market opened in Central Sydney October 4, 2011. Australian stocks eased 0.6 percent on Tuesday, pressured by falls in global equities markets in a fresh flight from riskier assets, but losses were limited after steep declines on Monday. REUTERS/Daniel Munoz (AUSTRALIA - Tags: BUSINESS)
The US market climbed higher after better than expected quarterly results from banks and building stocks and better than expected September retail sales.
After a quiet session yesterday the S&P/ASX 200 Materials index rebounded by 0.85% at lunch, helped by gains for the big 4 banks and the insurers. Westpac Banking Group (WBC) added 0.72% to $25.87 National Australia Bank (NAB) added 1.37% to $26.70 and ANZ Banking Group (ANZ) lifted by 0.5% to $25.91. Commonwealth Bank of Australia (CBA) gained 0.8% to $57.37. Amongst the insurers the early morning standouts were AMP Limited (AMP) up 1.9% to $4.56 and Suncorp Group Limited (SUN) up 1.89% while Insurance Australia Group Limited (IAG) lost ground to be $0.03 lower at lunch.
The S&P/ASX 200 Materials index is down 0.4%. Australia's biggest miner, BHP Billiton (BHP) is slipping by 0.64% to $33.13 while Rio Tinto (RIO) gave back 1.15% ahead of the release of its quarterly production numbers due out before the close of market today. Fortescue Metals (FMG) reported a 26% rise in iron ore shipped during the first quarter of the 2012 - 2013 financial year compared to the corresponding period last year. But quarter on quarter the numbers were lower off 10% and the ore mined also lower over the last quarter - but still better than expected by the market. FMG share price rallied from the start of trade and by lunch time had added 2.15% to $3.80. BlueScope Steel Limited (BSL) also higher up 3%.
Gold producer, Newcrest Mining (NCM) came under pressure in early trade after the US$ gold price fell again overnight, in early Asian trade the price held steady at US$1,738 an ounce. NCM was only slightly higher to $27.30 while smaller metal players lost ground with Regis Resources Limited (RRL) off 3% to $5.14. Medusa Mining Limited (MML) off 6.2% to $6.08.
Retailers were stronger and industrial stocks also rallying higher.
Telstra Corporation Limited (TLS) held its Annual General Meetings (AGM) today, the company said it expects its "dividend payments to remain flat in the current financial year despite forecasting earnings and income growth." TLS share price moved higher on the news up 0.37% to $3.95.
Cochlear Limited (COH) the manufacturer and distributor of cochlear implantable devices for the hearing impaired, also held its Annual General Meetings (AGM) today, Cochlear reconfirmed the last year saw some changes in revenue due to the recall of its C1500 series implant in September 2011 but the business was back on track, COH share price moved 1.5% higher to $71.99.
The Non-listed Nine Network drama continued today, the market is waiting to hear the outcome of today's major stakeholders meeting. The outcome will determine the future direction for the network if it is to be placed into receivership or selling off more non-core assets like: iselect, rate city or Cudo.
Shares in the Ten Network (TEN) gave back more ground off 2.8% to $0.34. TEN told the market on Friday that negotiations were still underway to sell its outdoor advertising business Eye Corp, amid reports the buyer has concerns about the business's financial performance. Seven West Media Limited (SWM) moved higher up 0.2% and News Corporation (NWS) higher ahead of its AGM tonight, up 0.46% to $24.26.
In economic news today; Reserve Bank of Australia (RBA) minutes released today confirmed that the recent pullback in mining activity and lower incomes were 2 large factors behind October rate cut.
The Australian dollar ended the day's session at US102.49c and 0.7912 Euro.
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Robert Pattinson-Kristen Stewart: Twilight Lovers To Bring Back Love at 2013 Cannes Festival [PHOTOS]
- Angelina Jolie Double Mastectomy: Other Celebrities Who Also Went Through the Surgical Procedure [PHOTOS]
- IN PHOTOS! A Picture of Sadness in Kristen Stewart as Robert Pattinson Celebrates 27th Birthday ALONE? [SLIDESHOW]
- Jaden Smith Clarifies Emancipation Reports with Dad Will Smith on TV Show ‘Ellen’ [PHOTOS AND VIDEO]