Australian Stock Market Report – Afternoon June 19, 2014
By Steven Daghlian, CommSec Market Analyst | June 19, 2014 6:27 PM EST
Fresh record highs in US markets overnight helped local shares post their biggest gains of 2014. The All Ordinaries Index (XAO) rose by 1.5 per cent, finishing above 5400pts for the first time in a week and largely making up for last week's 1.1 per cent tumble. Volume was also healthy due to index option expiry today. This tends to result in a spike in market activity.
Tim Wimborne / Reuters
People look at market display indicators through the window of the Australian Stock Exchange in Sydney
All sectors finished firmer, with the energy sector, industrials, financials, and technology firms all rising by more than 1.5 per cent. The recently underperforming mining industry however was the standout. Despite the iron ore price being 30 per cent lower than at the end of 2013, the metal rose by 1.1 per cent overnight. Australia's biggest miner, BHP Billiton (BHP) rose by 3.2 per cent, Rio Tinto (RIO) gained 2.31 per cent and Fortescue (FMG) rose by 4.98 per cent.
The energy sector was another outperformer as Woodside Petroleum (WPL) made up a portion of yesterday's 4.5 per cent slide. Energy giant Shell sold down a large part of its interest in the Australian oil and gas producer earlier in the week at a 14 per cent discount. The major banks surged by as much as 1.8 per cent, which helped lift the market significantly. In recent years, the financial industry has overtaken the miners as Australia's largest sector. Network Ten shares fell by close to 7 per cent after the broadcaster warned that its television revenue will be 3.5-4.5f per cent below last year.
Today was one of the busier days of the week for economic data in Australia. The December quarter report on population growth was issued this morning. The country's population rose by 1.73 per cent over the 12 months to December 2013. A detailed report on the labour market was issued today for the month of May. There were further signs that the property market is picking up the slack from the mining industry. CommSec chief economist Craig James said that "Job growth was modest in the three months to May, but given the negative media attention on the Budget, this was understandable. But it is clear that the housing sector is now driving job gains with professional services like architects, surveyors, conveyancing staff, real estate agents and accountants in strong demand."
By the close, 2.43 billion shares changed hands worth $7.2 billion. 594 stocks finished higher, 429 in the red and 394 were unchanged.
Tonight will be quiet for market moving economic news globally. European leaders will be meeting, while the latest weekly report on jobless claims will be issued in the U.S.
Tomorrow, Westfield will be voting on its restructure plans and potential creation of the Scentre Group. The Bank of Japan's Governor will be speaking and European finance ministers will be meeting in Brussels on Friday night.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- South Australia OKs $800M Copper, Gold & Iron Ore Mine on Prime Agri Land in Yorke Peninsula
- Australian Stock Market Report –Midday July 30, 2014
- Shanghai Stock Exchange Will Not Extend Trading Hours
- Long Beach Real Estate Market Is Pricing Out Home Buyers with Limited Budget
- Australian Stock Market Report –Afternoon July 30, 2014
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- 5 Food Scandals That Shocked The World