Australian Stock Market Report – Afternoon June 6, 2014
By Steven Daghlian, CommSec Market Analyst | June 6, 2014 5:29 PM EST
The Australian sharemarket continued to improve this afternoon, taking the gains to almost 0.5 per cent. Gains from U.S. markets and the first interest rate cut in six months for the European Central Bank helped lift stocks overnight. Improvements from the major banks accounted for around half of the market's gains today.
European unity is being tested to the limit by negotiations on an all important banking union to secure the future of the euro (Reuters)
Despite today's rise the All Ordinaries Index (XAO) still slipped by 0.55 per cent over the past five days. In percentage terms this week, the worst performers were the miners, consumer discretionary and staples together with the defensive telcos. All the above industries fell by at least 1 per cent this week. Thanks to a strong rise today, the financials and property trusts were the only two sectors to finish the week a touch firmer.
Almost all regions of the Australian sharemarket improved today with the exception of the defensive telecommunication and utility sectors. Telstra (TLS) slumped by 1.32 per cent or 7 cents today to $5.23. TLS rose to a hit a nine year high over the past fortnight.
The mining sector managed to edge a little higher by the close, helped by Australia's second biggest listed company by market capitalisation BHP Billiton (BHP) which rose by 0.11 per cent. Iron ore producer Fortescue Metals (FMG) slumped by 2.8 per cent.
The major banks contributed most to the market's rise, with the big four finishing as much as 1.3 per cent firmer; adding 15.5pts to the All Ordinaries Index.
It's been a big week for economic news globally. The Reserve Bank decided to keep rates on hold at 2.5 per cent for the 11th month, the Australian economy expanded by a better than expected 1.1 per cent between January and March, retail spending rose for the 12th month, two reports on China's manufacturing industry provided mixed signals and Australia recorded a worse than expected $122 million trade deficit.
At the close, 1.89 billion shares were traded today, worth $4.67 billion. 555 stocks were higher, 411 ended in the red and 395 were unchanged.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Join the Conversation
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- More Bad News for Android 5.0 Lollipop As Problems Come In for Nexus and Other Devices
- US To Supply Defensive Lethal Weapons To Kiev – A Vey Alarming Signal, Says Russia
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Travel Alert: New Delta Air Lines Airbuses Could Be Seen In Australia Soon
- Walmart Canada Feeling The Heat As Grocery War Intensifies
- Travel Alert: Frequent Flyer Tie-Up Between Virgin Australia, South African Airways Enhanced