THE sharemarket closed higher yesterday, with sentiment buoyed by rallies on overseas markets, though it pulled back slightly from early-morning gains.
The benchmark S&P/ASX 200 Index finished up
45.2 points, or 1.08 per cent, at 4212.8, while the broader All Ordinaries Index was up 44.8 points, or 1.06 per cent, at 4280.5.
On the ASX 24, the September share price index futures contract was up
25 points at 4,193, with 35,408 contracts traded.
CommSec market analyst Juliette Saly said strong European and US leads helped boost investor sentiment, particularly in the financial sector.
"Overnight, shares in Bank of America rallied about 11 per cent after some key analysts rejected suggestions the bank would need to raise capital," she said. "We saw great gains come through for our financial sector as well today."
The big four banks were all higher, with National Australian Bank the strongest performer, up 2.4 per cent, or 53?, at $23.07.
ANZ was up 19? at $19.88, Westpac rose 28?, or 1.4 per cent, to $20.00 and Commonwealth gained 78?, or 1.7 per cent, to $47.49.
"We have seen the Dow futures in negative territory so that could be a reason we have seen a bit of a pull-back at the close," Ms Saly said.
CityIndex chief market analyst Peter Esho said the market was being driven by the results of individual industrial companies this week, with trading based on whether they had met or exceeded expectations.
Woolworths fell $1.52, or 5.6 per cent, to $25.75 after reporting a 5.1 per cent increase in full-year profit in line with expectations.
Virgin Blue Holdings shares rose 3.5?, or 14.9 per cent to 27? despite posting a net loss of $67.8 million for the year to June 30.
Shares in construction company Leighton Holdings lost 70?, or 3.3 per cent, to $20.61, after it unexpectedly appointed Hamish Tyrwhitt as its new chief executive, and Stephen Johns as chairman, a day after chairman David Mortimer suddenly stood down.
Among the miners, BHP Billiton was up 40?, or 1.1 per cent, at $38.61 a day after it reported Australia's biggest-ever full-year profit of $US23.6 billion
($A22.46 billion).
Rio Tinto gained 80?, or 1.2 per cent, to $69.73.
Gold continued to dive, with the spot price down $US98.43 at $US1745.70 an ounce at the Sydney close. It peaked on Tuesday at $US1913.
National turnover was
2.4 billion shares worth
$5.8 billion, with 610 stocks up, 405 down, and 339 were steady.
Frequently Asked Questions about this Article…
How did the ASX 200 and All Ordinaries perform yesterday?
The benchmark S&P/ASX 200 finished higher, up 45.2 points (about 1.08%) at 4,212.8. The broader All Ordinaries Index also rose, up 44.8 points (about 1.06%) to 4,280.5.
What were the main reasons the Australian sharemarket rose — were international markets a factor?
Yes. Market sentiment was buoyed by strong leads from European and US markets, which helped boost investor confidence — especially in the financial sector. CommSec noted that a rally in US banks, including an about 11% move in Bank of America after analysts dismissed the need for a capital raise, supported local gains.
How did the big four Australian banks trade and what were their prices?
All of the big four banks were higher. National Australia Bank was the strongest, up 2.4% to $23.07. ANZ rose to $19.88, Westpac gained 1.4% to $20.00, and Commonwealth Bank increased about 1.7% to $47.49.
What happened with major miners like BHP Billiton and Rio Tinto?
Miners showed gains after strong company results. BHP Billiton rose about 1.1% to $38.61 a day after reporting a record full-year profit of US$23.6 billion (A$22.46 billion). Rio Tinto also gained around 1.2% to $69.73.
Why did gold prices fall and what were the recent gold levels reported?
Gold continued to slide, with the spot price down US$98.43 to US$1,745.70 an ounce at the Sydney close. The metal had peaked earlier in the week at about US$1,913 an ounce.
Why did Woolworths shares fall even though it reported higher full-year profit?
Woolworths fell $1.52 (about 5.6%) to $25.75 after reporting a 5.1% increase in full-year profit that was in line with expectations. The share move suggests investors reacted to the result being only in line with forecasts rather than exceeding them.
How did Virgin Blue perform given its annual loss — what should investors note?
Virgin Blue’s shares rose despite the airline reporting a net loss of $67.8 million for the year to June 30. The rise shows that markets sometimes reward other factors (such as outlook or trading dynamics) even when a company reports a loss.
What was market turnover and breadth yesterday, and what does that tell everyday investors?
National turnover was 2.4 billion shares worth about $5.8 billion. On the day 610 stocks rose, 405 fell and 339 were steady, indicating overall breadth was positive and trading activity was robust.
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