THE local sharemarket closed firmer yesterday, despite the debt impasse in the US, and made up some of the lost ground from Monday's sell-off.
The benchmark S&P/ASX 200 index rose 42.9 points, or 0.95 per cent, to 4573.3, while the All Ordinaries rose 42.5 points, or 0.92 per cent, to 4646.3. The September share price index futures contract finished 29 points higher at 4542.
A CMC Markets strategist, Michael McCarthy, said the market bounced back after concerns about the debt-ceiling stalemate in the US caused a widespread sell-off on Monday.
The US President, Barack Obama, said the nation was dangerously close to default, but appeared no closer to reaching a compromise with Republicans in Congress.
The US will be unable to borrow money and pay its bills after August 2, if a deal is not reached to extend the debt limit.
"There was a sell-off around [Republican House Speaker] John Boehner's response to the speech from Obama as markets [looked] for a solution," Mr McCarthy said.
"We didn't get that, but then I think it dawned on us that we'd made an over-adjustment [on Monday]."
Banks and financial stocks had a strong day, with the Commonwealth Bank the biggest gainer, up 68? to $50.22.
National Australia Bank rose 19? to $24.82, ANZ rose 24? to $21.55, and Westpac rose 10? to $21.36.
The big miners closed in good shape, with BHP Billiton up 46? at $43.52, despite the Federal Court ruling that a non-union collective agreement covering workers in its Pilbara operations was invalid. Rio Tinto rose 93? to $82.99.
In the energy sector, Oil Search rose 18? to $6.91 after it announced second-quarter operating revenues jumped 42 per cent.
Woodside Petroleum rose 63? to $39.48, and Origin Energy rose 26? to $15.22. The spot price of gold in Sydney closed at $US1614 an ounce, down $US3.57. Newcrest Mining fell 17? to $40.18.
The big retailers closed weaker. Wesfarmers fell 20? to $30.22 and Woolworths 2? to $27.40.
Telstra fell 1? to $3.03.
National turnover was 2.12 billion shares worth $5.01 billion.
Frequently Asked Questions about this Article…
How did the ASX perform yesterday and what were the index moves?
The local sharemarket closed firmer: the S&P/ASX 200 rose 42.9 points (to 4573.3) and the All Ordinaries rose 42.5 points (to 4646.3). The September share price index futures contract finished 29 points higher at 4542.
What caused the market bounce after Monday's sell-off?
Markets rebounded after an over-adjustment to concerns around the US debt-ceiling stalemate. CMC Markets strategist Michael McCarthy said the sell-off followed reactions to US political comments, but investors then realised they had likely over-reacted.
How did the big Australian banks perform — which bank led gains?
Banks and financial stocks had a strong day: Commonwealth Bank was the biggest gainer, rising to $50.22. National Australia Bank rose to $24.82, ANZ to $21.55 and Westpac to $21.36.
What happened with major miners like BHP Billiton and Rio Tinto on the ASX?
The big miners closed in good shape: BHP Billiton rose to $43.52 despite a Federal Court ruling that a non-union collective agreement in its Pilbara operations was invalid, and Rio Tinto rose to $82.99.
How did energy stocks perform and were there any company-specific updates?
Energy stocks were stronger: Oil Search rose to $6.91 after announcing second-quarter operating revenues jumped 42 per cent. Woodside Petroleum rose to $39.48 and Origin Energy to $15.22.
What happened to retail and telecom stocks like Wesfarmers, Woolworths and Telstra?
Big retailers closed weaker: Wesfarmers fell to $30.22 and Woolworths to $27.40. Telstra also fell, closing at $3.03.
What did the article say about gold prices and Newcrest Mining?
The spot price of gold in Sydney closed at US$1,614 an ounce, down US$3.57, and Newcrest Mining fell to $40.18.
What was overall trading activity on the day — how much turnover was recorded?
National turnover was 2.12 billion shares worth $5.01 billion, indicating solid trading activity across the market.
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