THE sharemarket closed marginally higher yesterday after a trading session in which defensive stocks shone.
The benchmark S&P/ASX 200 Index was up 4.7 points at 4510.5, while the broader All Ordinaries was up 2.9 points at 4533.5.
The market defied a weak lead from Wall Street to open in positive territory and managed to hold on to gains through the day in quiet trading.
It was the defensive parts of the market that kept the bourse in the black, offsetting some weakness in resource-related sectors.
Property was the best performing sector on the market yesterday, rising 1.43 per cent.
Mirvac, which reaffirmed earnings guidance for the full 2012-13 year, rose 2.5?, or 1.64 per cent, to $1.545.
Westfield Retail Trust, which announced a deal that swapped interests in seven shopping centres with AMP Capital, rose 8?, or 2.62 per cent, to $3.13.
"The defensive lead is being bought up on yield and earnings certainty over riskier plays," CMC Markets trader Ben Taylor said in a research note. "After a couple of days of falls this week progress is going to be slow."
Other defensive sectors such as telecoms (up 0.97 per cent), healthcare (up 0.56 per cent) and consumer staples (up 0.16 per cent) also had a good day.
On the downside, gold stocks slipped 2.48 per cent and metals and minerals slipped 0.39 per cent.
Goldminer Newcrest fell 48?, or 1.81 per cent, to $26.01. Newcrest chairman Don Mercer told shareholders at the company's annual meeting the miner was targeting 3 million ounces of gold production annually within the next few years.
In other news, ANZ said net profit for the year to September 30 rose 6 per cent to $5.66 billion due to improved performances from most of its businesses and cost reductions from job cuts. ANZ shares fell 22? to $25.38.
The other big retail banks finished mixed CBA advanced 22? to $57.30 and NAB rose 10? to $26, while Westpac dipped 1? to $25.26.
The spot price of gold in Sydney was $US1707.70 an ounce, up US84? from Wednesday's close.
Meanwhile, the dollar hit a one-week high, amid increased optimism about the Chinese economy and reduced expectations of further domestic interest rate cuts.
Late yesterday the dollar was trading at US103.76?, its highest in a week. ANZ foreign exchange strategist Andrew Salter said that in the absence of any major news, the currency had continued to rally in the wake of Wednesday's local inflation data and Chinese manufacturing figures.
Market turnover was 1.6 billion securities worth $3.6 billion, with 474 stocks up, 456 down and 351 unchanged. AAP
Frequently Asked Questions about this Article…
What was the overall ASX market result yesterday and how did the S&P/ASX 200 perform?
The sharemarket closed marginally higher in quiet trading. The S&P/ASX 200 was up 4.7 points to 4510.5 and the broader All Ordinaries rose 2.9 points to 4533.5, despite a weak lead from Wall Street.
Which sectors led the gains and why were defensive stocks in demand?
Defensive sectors led the gains, with property the best performer, up 1.43%. Traders said investors were buying defensives for yield and earnings certainty over riskier plays, which helped offset weakness in resource-related sectors.
How did property stocks like Mirvac and Westfield Retail Trust trade?
Mirvac reaffirmed earnings guidance for the full 2012–13 year and rose about 1.64% to $1.545. Westfield Retail Trust gained around 2.62% to $3.13 after announcing a deal that swapped interests in seven shopping centres with AMP Capital.
What happened to telecoms, healthcare and consumer staples on the ASX?
Other defensive sectors had a good day: telecoms rose about 0.97%, healthcare climbed about 0.56%, and consumer staples were up roughly 0.16%.
How did gold and mining stocks perform, and what news came from Newcrest?
Gold stocks slipped about 2.48% and metals and minerals fell around 0.39%. Newcrest shares dropped about 1.81% to $26.01. Newcrest's chairman said the miner is targeting roughly 3 million ounces of gold production annually within the next few years. The spot price of gold in Sydney was reported at US$1,707.70 an ounce, up US$84 from the previous close.
What were the latest results and share moves for the big banks, especially ANZ?
ANZ reported a net profit for the year to September 30 that rose 6% to $5.66 billion, helped by improved business performance and cost reductions from job cuts, but its shares fell about 2% to $25.38. Other big banks finished mixed: CBA advanced about 2% to $57.30, NAB rose about 1% to $26.00, and Westpac dipped about 1% to $25.26.
Why did the Australian dollar strengthen and what level did it reach?
The dollar hit a one‑week high amid increased optimism about the Chinese economy and reduced expectations of further domestic interest-rate cuts. Late in the day the currency was trading at US103.76, its highest in a week, with ANZ's FX strategist noting the rally continued after local inflation and Chinese manufacturing data.
What was market turnover and breadth for the trading session?
Market turnover was 1.6 billion securities worth about $3.6 billion. Breadth was fairly even: 474 stocks were up, 456 were down and 351 were unchanged.
Call 1300 880 160
Start a chat
Schedule a call
