Bourse shakes off torpor to end on high note
After a sluggish start the market gathered steam, with the benchmark S&P/ASX 200 Index finishing up 49 points, or 1 per cent, at 5157.7 points, while the broader All Ordinaries was up 47.8 points, or 0.9 per cent, at 5141.6.
CBA and blood products maker CSL did much of the heavy lifting amid expectations that the two companies would deliver strong earnings reports on Wednesday.
CBA advanced 1 per cent to $74.55 while CSL clawed back losses from past days to add 4 per cent to $67.80.
"CSL has been sold off in the past few sessions and bounced back," said Tony Paterno, senior investment adviser at Ord Minnett. "It's back to where it was a week ago, but it is having a big run."
It is widely expected that CSL's net profit will be about 20 per cent ahead, while analysts are tipping CBA to unveil a final dividend of just below $2 a share, and some are predicting a one-off return of capital via a special dividend.
The other banks also scored gains, with Westpac firming 0.3 per cent to $31.18, NAB strengthening 1.2 per cent to $31.06, while ANZ was up 1.1 per cent at $29.87.
The big miners also had a good day, supported by Chinese steel futures and gold prices continuing to trade near three-week highs.
BHP Billiton rose 0.4 per cent to $36.96, Rio Tinto advanced 0.8 per cent to $62.62 while gold miner Regis rallied 3.4 per cent to $3.64.
Gold eased 0.1 per cent to $US1336.88, but was still trading near its three-week high, following increased Chinese gold consumption and an inflow to SPDR Gold Trust, the world's biggest gold ETF. China's gold consumption surged in the first six months of the year as the metal slumped 20 per cent, luring buyers.
"It's only a bit of a bounce," Mr Paterno said. "If it runs beyond $US1400, it's a big positive."
Macquarie division director Martin Lakos was downbeat about gold's short-term outlook, saying when the US Fed begins tapering its $85 million a month the metal will come under pressure. "If there is a perception that US bond rates are going to rise modestly, that's going to add support for the US dollar," Mr Lakos said. "That's not positive for gold."
Frequently Asked Questions about this Article…
The article says a strong rally from CSL and record highs at Commonwealth Bank helped lift the benchmark S&P/ASX 200 up 49 points (about 1%) to 5157.7, while the All Ordinaries rose about 0.9% to 5141.6 after a sluggish start to the session.
CSL clawed back recent losses and added about 4% to $67.80, according to the report. Commentators noted CSL had been sold off in prior sessions and bounced back; analysts widely expect CSL's net profit to be roughly 20% ahead.
Commonwealth Bank shares advanced about 1% to $74.55. Analysts cited in the article are tipping CBA to announce a final dividend just below $2 a share, and some are predicting a one-off return of capital via a special dividend.
The other major banks also recorded gains: Westpac firmed about 0.3% to $31.18, NAB strengthened about 1.2% to $31.06, and ANZ was up about 1.1% at $29.87, the article reports.
Big miners had a good day supported by Chinese steel futures and gold trading near three-week highs. BHP Billiton rose about 0.4% to $36.96, Rio Tinto advanced about 0.8% to $62.62, and gold miner Regis rallied about 3.4% to $3.64.
Gold eased slightly (about 0.1%) to US$1,336.88 but remained near a three‑week high. The article attributes the support to increased Chinese gold consumption in the first half of the year and an inflow to the SPDR Gold Trust, the world's biggest gold ETF.
Yes. Macquarie division director Martin Lakos told the article that when the US Fed begins tapering its US$85 million-a-month purchases, gold could come under pressure — because a perception of rising US bond rates would tend to support the US dollar, which is not positive for gold.
The article includes cautious commentary: Tony Paterno described gold's rise as "only a bit of a bounce," and noted CSL had bounced back after recent selling but has had a big run. The coverage highlights earnings and dividend expectations as near-term drivers, suggesting some moves may be short-term reactions ahead of company reports.
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