THE sharemarket closed on Wednesday at its highest point in 17 months, but still off the day's highs, as positive leads from overseas boosted the local market.
The benchmark S&P/ASX 200 rose 7.8 points, or 0.2 per cent, to 4583.8, while the broader All Ordinaries was up 10.5 points, or 0.2 per cent, to 4591.8.
"We've seen a bit of up and down from the market, but in general terms it hasn't been doing a huge amount," said CommSec analyst Steven Daghlian.
Among the sectors, health jumped 2 per cent, energy added 1.5 per cent, consumer discretionary rose 0.9 per cent and materials inched up 0.5 per cent. Telecoms and financials bucked the trend, slipping 1.3 and 0.3 per cent respectively.
The ASX 200 pushed above 4600 for the first time since July last year after Wall Street and European markets finished higher, with five-year highs in Germany lifting markets across the continent.
Higher commodity prices helped boost the resources sector, with iron ore at $US124.90 a tonne.
Iron ore miner Fortescue was the biggest winner among the miners, up 1.7 per cent to $4.28.
BHP rose 1 per cent to $35.76 after it said it would sell its interest in the Browse LNG joint venture, while rival Rio Tinto jumped 0.7 per cent to $62.20.
"With the miners, you have to take a step back and compare it to the rest of the market this year - the Aussie market is up about 12 per cent this year, the mining sector's down 1.5 per cent, so the mining sector is still struggling and dragging its heels," said Mr Daghlian.
The expectation of more quantitative easing in the US saw the Australian dollar rise to three-month highs, fetching $US1.0541.
Linc Energy surged 25 per cent on Wednesday, adding to a 17 per cent jump on Tuesday, after news emerged that the company was in talks with Russian billionaire Roman Abramovich about opportunities for the company in Russia. The Brisbane-based company finished at $1.30.
Investors reacted sombrely to Coca-Cola Amatil's earnings guidance for 2012, despite an expected 5 per cent increase in profit growth. The shares slipped 2.6 per cent to $13.56.
Echo Entertainment announced a new chief executive, John Redmond, a former executive with casino groups such as Caesars, which was well received by the market as the shares added 3.2 per cent to finish at $3.52.
All the major banks recorded losses. ANZ slipped 0.8 per cent to $24.70, Westpac fell 0.4 per cent to $25.90, NAB dropped 0.2 per cent to $24.66 and CBA lost 0.1 per cent to $61.20. Westpac, NAB and Bank of Queensland will hold their annual meetings on Thursday.
Frequently Asked Questions about this Article…
What happened to the ASX 200 and All Ordinaries during the latest trading session?
The S&P/ASX 200 rose 7.8 points (0.2%) to 4,583.8 and the All Ordinaries gained 10.5 points (0.2%) to 4,591.8. The market closed at its highest point in 17 months, and during the session the ASX 200 even pushed above 4,600 for the first time since July last year.
Which sectors led gains and which sectors slipped in the market update?
Health led the market, jumping 2%, while energy added 1.5%, consumer discretionary rose 0.9% and materials inched up 0.5%. Telecoms and financials lagged, slipping 1.3% and 0.3% respectively.
How did commodity prices and iron ore influence the resources sector?
Higher commodity prices helped lift the resources sector; iron ore was trading around US$124.90 a tonne, supporting miner gains during the session.
How did major miners like Fortescue, BHP and Rio Tinto perform and why might miners still be under pressure?
Fortescue rose 1.7% to $4.28, BHP was up about 1% to $35.76 after announcing it would sell its interest in the Browse LNG joint venture, and Rio Tinto jumped 0.7% to $62.20. Despite these moves, the mining sector has been lagging year-to-date — the Aussie market is up about 12% this year while the mining sector is down about 1.5%, so miners are still struggling relative to the broader market.
Why did Linc Energy's share price surge and by how much?
Linc Energy surged 25% on Wednesday (after a 17% jump the day before) to finish at $1.30 after news emerged that the Brisbane-based company was in talks with Russian billionaire Roman Abramovich about opportunities in Russia.
What market reaction followed Coca-Cola Amatil's earnings guidance and how did the stock move?
Investors reacted cautiously to Coca‑Cola Amatil's earnings guidance for 2012, despite the company expecting about 5% profit growth. The shares slipped 2.6% to $13.56.
How did corporate news at Echo Entertainment affect its stock price?
Echo Entertainment announced a new chief executive, John Redmond (a former executive with casino groups such as Caesars), and the market responded positively — the shares rose 3.2% to finish at $3.52.
What happened to major bank stocks and what should investors note about upcoming events?
All the major banks recorded losses in the session: ANZ slipped 0.8% to $24.70, Westpac fell 0.4% to $25.90, NAB dropped 0.2% to $24.66 and CBA lost 0.1% to $61.20. Investors should note that Westpac, NAB and Bank of Queensland were scheduled to hold their annual meetings the following day.
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