Resilient market rebounds from early fall
The benchmark S&P/ASX 200 Index edged up 1.8 points to 5433.8.
Telstra rose 0.8 per cent to $5.18, as analysts endorsed its planned listing of Autohome on the New York Stock Exchange.
Commonwealth Bank did the heaviest lifting, rising 1.3 per cent to a record $77.96, after earnings in the September quarter surged 14 per cent to $2.1 billion, boosted by lower bad debts and gains in the home loan market.
‘‘Overall, the quality of results this bank reporting season was solid, despite subdued revenue growth in the sector,’’ Ausbil Dexia’s portfolio manager, John Grace, said.
‘‘All of the big four banks displayed a cyclically low level of bad debts, improved asset quality and capital ratios, which enabled payout ratios to edge up.’’ NAB rose 0.3 per cent to $35.89, while ANZ edged up 1¢ to a record $33.80, and Westpac gained 0.1 per cent to $34.39.
NAB and ANZ go ex-dividend on Thursday, and Westpac goes ex-dividend on Friday.
AMP lost 1.1 per cent to $4.66 on news that it plans to raise $200 million from investors through a subordinated notes offer. The wealth company, which issued a $89 million profit warning last month, will use a big part of the subordinated debt to fund its capital requirements.
Bureau of Statistics figures show Australia is on the brink of becoming a net exporter and eradicating its trade deficit, as exports climb.
The trade deficit shrank from $409 million in August to just $284 million in September, well below its recent peak of $3.2 billion in November 2012.
Metals and mining stocks, the biggest contributor to Australia’s exports, rose 0.6 per cent as the iron ore spot price rose 0.7 per cent to $US136.80 a tonne.
BHP added 0.6 per cent to $38.09, while Rio Tinto rose 1.4 per cent to $65.60. Fortescue Metals jumped 5.6 per cent to $5.84 as UBS upgraded its recommendation to ‘‘buy’’.
At the local close, the dollar was buying US95.13¢, up from US94.67¢ at the previous close, which put pressure on exchange rate-sensitive stocks.
Frequently Asked Questions about this Article…
The sharemarket rebounded from an early fall to post a modest gain, with the S&P/ASX 200 Index edging up 1.8 points to 5433.8.
The share market rebounded from an early fall to post a modest gain, with the S&P/ASX 200 Index edging up 1.8 points to 5433.8.
Commonwealth Bank's strong first-quarter profit, which rose 14% to $2.1 billion, helped buoy the market, contributing to the overall gain.
Commonwealth Bank's strong first-quarter profit, which rose 14% to $2.1 billion, helped buoy the market, contributing to the overall gain.
Telstra's stock rose by 0.8% to $5.18 as analysts endorsed its planned listing of Autohome on the New York Stock Exchange.
Telstra's stock rose by 0.8% to $5.18 as analysts endorsed its planned listing of Autohome on the New York Stock Exchange.
All of the big four banks showed improved asset quality and capital ratios, with Commonwealth Bank, NAB, ANZ, and Westpac all experiencing gains.
All of the big four banks showed improved asset quality and capital ratios, with Commonwealth Bank, NAB, ANZ, and Westpac all experiencing gains.
The mining sector, a major contributor to Australia's exports, saw a rise of 0.6% as the iron ore spot price increased, with companies like BHP, Rio Tinto, and Fortescue Metals seeing gains.
The shrinking trade deficit, which fell from $409 million in August to $284 million in September, indicates that Australia is on the brink of becoming a net exporter.
Australia's trade deficit shrank significantly, from $409 million in August to $284 million in September, indicating a positive trend towards becoming a net exporter.
The mining sector saw a rise of 0.6%, with BHP, Rio Tinto, and Fortescue Metals all experiencing gains, driven by an increase in the iron ore spot price.
AMP's stock fell by 1.1% to $4.66 following news of its plan to raise $200 million through a subordinated notes offer to fund its capital requirements.
The Australian dollar rose to US95.13¢, putting pressure on exchange rate-sensitive stocks.
The Australian dollar rose to US95.13¢, up from US94.67¢, which put pressure on exchange rate-sensitive stocks.
AMP plans to raise $200 million through a subordinated notes offer to fund its capital requirements, following a recent profit warning.
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