Australian Stock Market Report –Afternoon July 2, 2014

By @ibtimesau on
Tony Abbott at New York Stock Exchange
Australia's Prime Minister Tony Abbott (L) rings the opening bell at the New York Stock Exchange June 10, 2014. REUTERS / BRENDAN MCDERMID REUTERS


The Australian share market rebounded solidly on Wednesday, following another record high for US blue-chip stocks during Tuesday's trade.

The All Ordinaries Index (XAO) added 75.2 points or 1.4 per cent to 5441.7 points with every sector closing higher.

Mining players were among the best performing sectors, rising 1.8 per cent, while the consumer staples sector gained 2.5 per cent and financials rose by 1.5 per cent.

Not such a great day though for salary packaging company Smart Group. SIQ shares fell 9.7 per cent on their debut to $1.445. Shares in fellow salary packaging company McMillan Shakespeare (MMS) rose 0.2 per cent today to $9.22.

Shares in Treasury Wine Estates (TWE) fell one per cent to $4.88 after lawyers filed a class action against the company on behalf of 600 shareholders. The shareholders are seeking to reclaim some of the losses they incurred when TWE shares fell in July 2013, after the company announced $160 million in write-downs relating to excess stock being held by its US distributors.

In economic news, Australia's trade balance moved further into the red in May, recording a deficit of $1,911 million. The April trade deficit was revised from $122 million to $780 million.

Over the past year exports to China hit a record $100.8 billion, up 29.9 per cent over the year and accounting for a record 36.7 per cent of Australia´s total exports.

"The latest trade figures were disappointing," wrote CommSec Economist Savanth Sebastian of the data. "Not only did Australia record a second consecutive trade deficit, but the magnitude of the deficit was certainly a lot worse than expectations In addition the deficit in April was revised lower."

The Australian dollar touched an eight month high, above US95c overnight, closing the day's trade at US94.6c.

1.8 billion shares were traded, worth $4.8 billion.

Ahead tonight, factory orders data is released in the US.

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