australian stocks clock their third consecutive winning session 1710112015
Investors relieved by the Greek parliamentary vote passing austerity reforms
Australian stocks surged higher for the third session in a row, led by a strong show from the large banks, and boosted by fresh weakness in the Australian dollar that took it to a new six-year low.
Indices and sectors
The benchmark S&P/ASX 200 rose 33.4 points, or 0.6 per cent, and closed at 5,669.6, while the broader All Ordinaries index was up 30.8 points, or 0.5 per cent, at 5,649.8.
The top gaining sectors were telecommunications services (+1.23 per cent), financials (+1.10 per cent), real estate investment trusts (+0.92 per cent) and consumer discretionary (+0.51 per cent). The losing sectors included healthcare (-0.93 per cent), energy (-0.88 per cent) and information technology (-0.13 per cent).
Stocks
In mining, BHP Billiton Limited (ASX:BHP) gained 0.67 per cent to AU$27.08 and Rio Tinto Limited (ASX:RIO) was up 0.36 per cent to AU$53.31. However, Fortescue Metals Group Limited (ASX:FMG) shed 1.41 per cent to AU$1.75. Rio Tinto Limited (ASX:RIO) reported that its quarterly production was up 9 per cent. Meanwhile, iron ore prices jumped back above US$50 a tonne on better-than-expected Chinese economic growth, according to The Australian.
The larger energy stocks ended in the red following weakness in global crude prices post the Iranian nuclear deal. Woodside Petroleum Limited (ASX:WPL) declined 1.12 per cent to AU$34.57, Origin Energy Ltd (ASX:ORG) was down 1.75 per cent to AU$11.24 and Santos Ltd (ASX:STO) fell 1.40 per cent to AU$7.72. However, Oil Search Limited (ASX:OSH) gained 1.27 per cent to AU$7.20.
The big banks ended solidly in positive territory. Commonwealth Bank of Australia (ASX:CBA) was up nearly a percent to AU$87.96, Westpac Banking Corp (ASX:WBC) shot up 1.85 per cent to AU$34.63, Australia and New Zealand Banking Group (ASX:ANZ) gained 0.68 per cent to AU$32.64 and National Australia Bank Ltd. (ASX:NAB) moved up 1.60 per cent to AU$34.32.
The retailers presented a mixed performance. Though Wesfarmers Ltd (ASX:WES), the owner of supermarket chain Coles, was up 0.38 per cent to AU$41.74, Woolworths Limited (ASX:WOW) fell 0.42 per cent to AU$28.18. Caltex Australia Limited (ASX:CTX) declined 0.09 per cent to AU$34.20 and Myer Holdings Ltd (ASX:MYR) shot up 1.19 per cent to AU$1.28.
Pet care company Greencross Limited(ASX:GXL) was the top gainer on the S&P/ASX 200, rising 6.54 per cent to AU$5.70. On the other hand, healthcare services provider Primary Health Care Limited (ASX:PRY) was the biggest loser on the S&P/ASX 200, falling over 8 per cent to AU$4.77 on the company’s announcement that its underlying 2014-15 earnings before interest, tax, depreciation and amortisation (EBITDA) will be around 4 per cent below consensus at AU$400 million. Whitehaven Coal Limited (ASX:WHC) was the second largest loser on the index, falling 6.43 per cent to AU$1.16 after company management said prices of metallurgical coal are expected to fall further in the September quarter, given a supply glut and slowing Chinese demand.
Economic news, currency and market outlook
The Greek Parliament voted late in the night to pass controversial austerity laws in a desperate measure to avoid a financial collapse and an exit from the Eurozone, accepting the bailout conditions imposed by international creditors. Though the vote went through with the help of opposition parties, Prime Minister Alexis Tsipras is facing revolt within his own party for his U-turn on party pledges, while protesters were out in force prior to the vote and engaged in protests, some violent, against the police outside Parliament.
Stocks closed higher on Wall Street, following upbeat earnings reports and the Greek Parliament’s vote in favour of austerity measures required to qualify for a fresh bailout from international creditors, according to Dow Jones Newswires. The Dow Jones Industrial Average gained 70 points, or 0.4 per cent, to 18,120, the S&P 500 index advanced 17 points, or 0.8 per cent, to 2,124, and the Nasdaq Composite Index rallied 64 points, or 1.3 per cent, to 5,163, a new record closing high.
The Australian dollar fell as low as 73.54 US cents, a six-year low, in early trading on Thursday following the comment from US Fed Chair Janet Yellen that there was a good likelihood of US interest rates rising this year. However, the local currency is currently trading somewhat higher after the release of disappointing US economic data, according to Business Spectator. At 07:00 this morning (AEST) the Aussie was trading at 74.04 US cents, up from 73.81 US cents on Thursday.
The Australian stock market is likely to open slightly higher today given that at 06:30 am (AEST) this morning the September ASX SPI200 Index (AP) Futures was up 7 points at 5,629.
