Miners push ahead on 10th day of gains
The benchmark S&P/ASX 200 added 7.7 points, or 0.2 per cent, to 4896.7, while the broader All Ordinaries gained 8.3 points, or 0.2 per cent, to 4919.1.
The 10 days of gains on the ASX 200 mark the longest winning streak since October 2003.
The materials sector held the market in the black as financials, which had led most of the recent rally, slowed down slightly for the day.
Among the sectors, materials jumped 0.9 per cent, energy added 1 per cent and financials inched up 0.17 per cent.
Head of risk and execution at Citi Sean Larcombe said after 10 days with the market in positive territory there seemed to be some fatigue setting in, with the focus on offshore data overnight.
"You've got the FOMC [Federal Open Market Committee] meeting [in the US], two large bond auctions in Europe, US and Spanish GDP, US employment data coming out and a whole raft of companies reporting," Mr Larcombe said.
Among the miners, Rio Tinto jumped 1.5 to $67.12, while rival BHP gained 1.2 per cent to $37.62. Iron ore miner Fortescue added 0.9 per cent to $4.73.
"The iron ore price seems to have consolidated at this level; if it holds . . . then some resource names look a lot more attractive," Mr Larcombe said.
The big banks halted their charge forward, with ANZ the only major to post gains, up 0.3 per cent at $26.58. NAB fell 0.3 per cent to $27.64, Westpac lost 0.2 per cent to $28.17 and Commonwealth was relatively flat at $64.70.
Despite the pull back, Mr Larcombe remained optimistic about the financial sector.
"Financials has been the only sector to see net earnings upgraded on a global basis through this reporting period," he said.
"The US is seeing the same sort of thematics that we're seeing in our market in terms of that flow of funds into the financials."
Wesfarmers shares lost ground, despite reporting increases in sales across all its retail businesses. The shares fell 1.8 per cent to $38.13, while rival Woolworths, which reports on Thursday, lost 0.7 per cent to $31.65.
Media shares also took a battering; Ten Network dropped 2.9 per cent to 33.5¢, Fairfax Media slid 2.7 per cent to 55¢, Seven West Media fell 1.9 per cent to $2.10 and APN lost 1.6 per cent to 30.5¢.
The Australian dollar was slightly higher but was trading in a tight range.
At 5pm on Wednesday, the dollar was trading at US104.73¢, up from US104.52¢ on Tuesday.
Frequently Asked Questions about this Article…
The S&P/ASX 200 extended its winning streak to 10 sessions as miners and the materials sector pushed the market higher. The ASX 200 added 7.7 points (0.2%) to close at 4,896.7, while the All Ordinaries gained 8.3 points (0.2%) to 4,919.1. This 10-day run is the longest streak since October 2003.
Materials led the market, jumping 0.9%, while energy rose about 1.0%. Financials continued to inch higher but at a slower pace, up roughly 0.17% as the big banks paused after earlier gains.
Mining stocks outperformed: Rio Tinto rose about 1.5% to $67.12, BHP gained about 1.2% to $37.62, and iron ore miner Fortescue added about 0.9% to $4.73.
Citi's head of risk and execution, Sean Larcombe, noted the iron ore price appears to have consolidated at current levels. If it holds, some resource names could look more attractive to investors.
The major banks eased back: ANZ was the only big bank to post a gain, up 0.3% to $26.58. NAB fell about 0.3% to $27.64, Westpac lost about 0.2% to $28.17, and Commonwealth Bank was relatively flat at $64.70.
Larcombe said some market fatigue was setting in after 10 straight positive sessions and attention was turning to offshore events including the US FOMC meeting, large European bond auctions, GDP releases and US employment data, plus a wave of company reports.
Wesfarmers shares fell about 1.8% to $38.13 despite reporting sales increases across its retail businesses. Woolworths slipped about 0.7% to $31.65 ahead of its earnings report due the following day—share moves can reflect investor positioning and expectations around results, not just sales growth.
Media shares were weaker: Ten Network dropped 2.9% to 33.5¢, Fairfax Media slid 2.7% to 55¢, Seven West Media fell 1.9% to $2.10 and APN lost 1.6% to 30.5¢. The Australian dollar was slightly higher but trading in a tight range, at US104.73¢ at 5pm on Wednesday (up from US104.52¢ on Tuesday).
Call 1300 880 160
Start a chat
Schedule a call
