the spasx 200 jumps higher as investors scoop up banking stocks 1945652015
China’s Shanghai Composite index swings back from early losses to close in positive territory
Australian stocks rebounded strongly Wednesday under the leadership of banking stocks and supported by good gains in the energy sector.
Investors shrugged off overnight losses on Wall Street and early weakness in Chinese stocks, choosing to go bargain picking instead.
Indices and sectors
The benchmark S&P/ASX 200 rose 77.1 points, or 1.4 per cent, and closed at 5,380.2, while the broader All Ordinaries index was up 70.4 points, or 1.3 per cent, at 5,379.8.
The gaining sectors included energy (+2.87 per cent), consumer staples (+2.09 per cent), financials (+1.97 per cent), telecommunications (+1.36 per cent) and real estate investment trusts (+1.22 per cent). The only losing sector was consumer discretionary (-0.04 per cent).
Stocks
In the best performing energy sector, Woodside Petroleum Limited (ASX:WPL) shot up 2.53 per cent to AU$32.86, Santos Ltd (ASX:STO) gained 3.42 per cent to AU$6.04, Oil Search Limited (ASX:OSH) was up 2.19 per cent to AU$6.54 and Origin Energy Ltd (ASX:ORG) jumped 5.32 per cent to AU$9.89.
In mining BHP Billiton Limited (ASX:BHP) moved up 0.72 per cent to AU$25.16, Rio Tinto Limited (ASX:RIO) gained 0.12 per cent to AU$50.65 and Atlas Iron Limited (ASX:AGO) was up 3.7 per cent to AU$0.03. However, Fortescue Metals Group Limited (ASX:FMG) slipped 2.02 per cent to AU$1.95.
Banks clocked stellar gains. Commonwealth Bank of Australia (ASX:CBA) was up 1.77 per cent to AU$78.27, Westpac Banking Corp (ASX:WBC) zoomed over 3 per cent to AU$32.71, National Australia Bank Ltd. (ASX:NAB) shot higher by 2.58 per cent to AU$32.58. Australia and New Zealand Banking Group (ASX:ANZ) was also up 3 per cent at AU$29.84.
Supermarkets and retailers also did well. Wesfarmers Ltd (ASX:WES), the owner of supermarket chain Coles, was up 1.82 per cent at AU$40.38, Woolworths Limited (ASX:WOW) shot up 1.79 per cent at AU$27.24 and Caltex Australia Limited (ASX:CTX) gained nearly 2 per cent at AU$32.70. However, Myer Holdings Ltd (ASX:MYR) slumped 4.12 per cent to AU$1.28.
Blue-chip Telstra Corporation Ltd (ASX:TLS) was up 1.47 per cent to AU$6.21.
Ainsworth Game Technology Limited (ASX:AGI) was the top gainer on the S&P/ASX 200, up 14.23 per cent to AU$3.21, on news that the company’s net profit after tax jumped 14 per cent to AU$70.4 million, even though revenue declined 1 per cent to AU$240.6 million.
Treasury Wine Estates Ltd (ASX:TWE), the second-biggest gainer on the S&P/ASX 200, surged 13.43 per cent to AU$6.25 after it declared a profit of AU$77.6 million. According to the The Sydney Morning Herald, China is likely to become the company’s biggest market in time to come, and may also benefit from the hot new trend of men drinking rosé wine.
Whitehaven Coal Limited (ASX:WHC) continued its recent uptrend and jumped nearly 13 per cent to AU$1.245.
Online jobs classifieds platform SEEK Limited (ASX:SEK), the top loser on the S&P/ASX 200, fell nearly 11 per cent to AU$12.27 despite reporting strong full-year sales of AU$858.4 million, which were up 20 per cent. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 15 per cent to AU$348.9 million.
Economic news, currency and market outlook
The minutes of the US Fed’s July meeting showed that the central bank edged closer to an interest-rate hike amidst an improving job market, though some policymakers were worried about slow inflation and weakness in the global economy, according to The Sydney Morning Herald.
On Wall Street Wednesday, stocks closed lower in volatile trading, as investors were thrown into doubt whether the Fed will raise rates at its next policy meeting, and energy stocks posted solid losses, according to Reuters. The Dow Jones Industrial Average fell 162.61 points, or 0.93 percent, to 17,348.73, the S&P 500 lost 17.31 points, or 0.83 percent, to 2,079.61 and the Nasdaq Composite dropped 40.30 points, or 0.8 percent, to 5,019.05.
The Australian dollar is trading higher as fresh doubts emerged on whether the US Fed will increase interest rates in September, according to the Business Spectator. At 07:15 am this morning (AEST) the Australian dollar was trading at 73.52 US cents, flat from where it was on Tuesday but up from a low of 73.23 cents.
The Australian stock market is likely to open lower given that at 06:40 am (AEST) today the September ASX SPI200 Index (AP) Future contract was down 53 points at 5,300.
