Australian market goes own way to finish higher
The benchmark S&P/ASX 200 Index closed up 41.7 points, or 0.8 per cent, to 5275.9 points. The broader All Ordinaries Index was up 40.6 points, or 0.78 per cent, to 5270.1 points.
But there appeared to be no major driver behind the gains, with CMC Markets chief market strategist Michael McCarthy saying some stocks had posted almost inexplicable rises.
One of those was department store David Jones, which rose 14¢, or 4.9 per cent, to $2.99 despite a 6 per cent fall in its annual net profit to $95.2 million.
Its underlying profit rose slightly to $101.6 million, but Mr McCarthy said the result looked poor and the outlook was gloomy.
"The only explanation I can put on it is that the market was expecting a lot worse in terms of their strategic initiatives and potential write-downs," he said.
Other retailers also rose, with Myer up 2¢ to $2.67 and JB Hi-Fi up 14¢ to $20.92.
Energy stocks rose despite several days of oil price falls, suggesting traders were speculating on a bounce in the oil price.
Oil Search added 29¢ to $8.79, Santos gained 23¢ to $15.33 and Woodside was 25¢ higher at $38.85.
BHP Billiton improved 13¢ to $36 and Rio Tinto gained 31¢ to $62.41.
"For most of the day, all sectors were in positive territory, but there's no detectable investment theme here," Mr McCarthy said. "The Australian market is marching to its own tune today."
Markets in Japan and China fell on Wednesday.
Telstra was steady at $4.93 as it announced 1100 jobs would be cut as part of a restructure of its operations business. National turnover was 1.38 billion securities worth $3.85 billion.
Frequently Asked Questions about this Article…
The Australian sharemarket closed higher led by energy and consumer goods stocks. The S&P/ASX 200 rose 41.7 points (0.8%) to 5275.9, while the All Ordinaries was up 40.6 points (0.78%) to 5270.1. There wasn't a single clear catalyst — strategists said some rises were almost inexplicable and the market was "marching to its own tune."
Energy and consumer goods stocks led the gains, with most sectors trading in positive territory for much of the day. For everyday investors, that suggests sector rotation and stock-specific moves rather than a broad macro theme — it may pay to watch individual company results and sector momentum.
David Jones shares rose 14c (4.9%) to $2.99 despite a 6% fall in annual net profit to $95.2 million; its underlying profit edged up to $101.6 million. Market commentary noted the result looked poor and the outlook gloomy, so the share bounce likely reflected relief versus even worse expectations rather than a strong operational turnaround.
Other retailers also rose: Myer was up 2c to $2.67 and JB Hi‑Fi gained 14c to $20.92. These moves show positive investor interest in some retail names on the day, even where company fundamentals vary.
Energy stocks climbed on speculation traders were betting on a bounce in the oil price despite several days of oil falls. Specific moves included Oil Search up 29c to $8.79, Santos up 23c to $15.33, and Woodside 25c higher at $38.85.
Major miners improved: BHP Billiton rose 13c to $36 and Rio Tinto gained 31c to $62.41, contributing to the broader positive tone in resource stocks.
Telstra announced about 1,100 jobs would be cut as part of a restructure of its operations business. Its share price was steady at $4.93 on the announcement, indicating a cautious or neutral initial market reaction.
Markets in Japan and China fell on the same day, but the Australian market still finished higher. Commentary suggested the local market was acting independently rather than following the overseas falls.
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