Australian Stock Market Report – Midday June 19, 2014
By Steven Daghlian, CommSec Market Analyst | June 19, 2014 4:35 PM EST
The Australian sharemarket has broken a two day losing streak, helped by fresh record highs in US markets. The All Ordinaries Index (XAO) is up 0.9 per cent, making it the best day for local shares in over two months.
An office worker is reflected in the window of the Australian Securities Exchange building displaying the ASX50 curve for Wednesday in central Sydney August 7, 2013.
Comments by the Federal Reserve (North America's central bank) that interest rates are likely to remain low for longer to support the US economy has boosted markets. American markets have doubled in value over the past five years. As expected, the Federal Reserve has reduced its monthly stimulus by US$10 billion to US$35 billion and has cut its growth forecasts for 2014 and the long-term.
All sectors are firmer at lunch, with the exception of the slightly softer property trusts. The mining industry is up 2.1 per cent and continues to make up for last week's 2.7 per cent tumble. The price of iron ore rose 1.1 per cent, helping lift the ore producers at lunch. BHP Billiton (BHP) is up by 2.7 per cent while Rio Tinto (RIO) is up 2.1 per cent.
Energy stocks are higher despite mixed oil prices overnight. Australia's second largest oil and gas producer, Woodside (WPL) is up 1.45 per cent and is leading the sector higher. Yesterday however, WPL slumped by 4.5 per cent as its largest shareholder, Shell sold down a large portion of its stake. A lack of growth projects in the pipeline for WPL has concerned some investors.
In the retail space, JB Hi-Fi (JBH) is up 0.88 per cent as it reaffirmed its annual profit expectations. The discount retailer expects an 8.3 per cent to 10.8 per cent lift in earnings to $126-$129 million. It does expect sales to be lower than previous estimates though. JBH has announced that at the end of this month, current CEO Terry Smart will hand over the leadership reigns to CFO, Richard Murray.
On the economic front, a quarterly update on population growth, the RBA Bulletin and detailed labour market data are highlights. Australia's population has grown by 405,000 over the 12 months to September 2012. The RBA Bulletin includes topical articles on the economy and is available to the public on the Reserve Bank's website.
At lunch, 1.24 billion shares have changed hands worth $4.11 billion. Index option expiry day today is one reason why volume is greater than usual. 497 stocks are higher, 324 are in the red and 380 are flat.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Still The World Champions: Team USA Overpowers Serbia, 129-92 To Win 2014 FIBA World Cup [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- After Win Over Maidana, Mayweather Says He Is Prepared To Negotiate A Fight With Pacquiao
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
Join the Conversation
- Australian Stock Market Report – Afternoon September 15, 2014
- Iron Age For Australia Ends As Price Of Key Steelmaking Ingredient Dips Below $83/Tonne
- Australian Stock Market Report – Morning September 15, 2014
- Australian Stock Market Report – Midday September 15, 2014
- Australian Stock Market Report – Midday September 16, 2014
- iPhone 6 vs iPhone 6 Plus vs Galaxy S5 and HTC One M8: Performance, CPU and Health
- Google Release Roundup: Nexus 5 2014, Nexus 6, Nexus 8 and Android L Killer Features
- Samsung Attacks iPhone 6 Plus Through New Galaxy Note 4 Commercial: Apple Claims Imitating Galaxy Note Phablets
- iPhone 6 And IPhone 6 Plus Sold Out, New Stocks To Arrive In October
- Moto G (Gen 2) vs. Xiaomi Redmi 1S—Specifications, Features And Price Showdown
- Nexus 6, 8 Release Dates Imminent as Moto X Pre-Order Begins & Nexus 7 Deals Ramp Up
- iPhone 6 And iPhone 6 Plus Shipping Has Begun, Expected To Reach Customers’ Doorstep On Sept 19 Launch Date