THE sharemarket closed stronger yesterday as investors snapped up industrial stocks amid renewed hopes for a solution to the European debt crisis.
The S&P/ASX 200 Index gained 23.8 points, or 0.58 per cent, to 4147.7.
Burrell Stockbroking senior adviser Jamie Elgar said market gains were across the board, except for the resource sector. "There was a combination of things, with data coming out of China and markets still really looking for some easing, particularly from the US Federal Reserve."
Mr Elgar said markets remained hopeful of a potential bailout for Spain.
"Spain's 10-year bond yield is now in the unsustainable category," he said. "There's a lot of different talk coming out of Europe that maybe Spain needs to have a full bailout, or they're better off doing a euro exit."
The big four banks all closed higher. Commonwealth was in the lead, gaining 55? to $55.41, and Westpac put on 16? to $22.61. ANZ firmed 2? to $22.66 and National Australia Bank was also up 2?, at $23.84.
Goldminers shone in what was otherwise an off day for the resource sector. Newcrest Mining rose 22? to $22.37 after it reported it had exceeded its 2011-12 copper production targets and met its gold production forecast.
At the close of Sydney trade, spot gold was up $US21.42 at $US1606.06 an ounce.
OZ Minerals lost 5? to $7.38 after revealing a sharp quarterly jump in production costs while Energy Resources of Australia lost half a cent to $1.47 after narrowing its first-half net loss.
BHP Billiton closed 12? higher at $30.97 but Rio Tinto fell 50? to $50.51.
Qantas made its biggest gain in weeks, soaring 9.5?, or 9.6 per cent, to $1.08 after the company confirmed it was in talks with several airlines, including Dubai-based Emirates, about potential alliances.
Shares in Wesfarmers rose 27? to $32.25 after it reported a rise in sales at its Coles supermarket division but a 1.8 per cent fall in turnover at retail chain Target and no change at Kmart.
Investors welcomed Caltex Australia's announcement that it would close its Sydney oil refinery and replace it with an import terminal. The shares rose 20? to $14.26.
Frequently Asked Questions about this Article…
What happened to the S&P/ASX 200 and the Australian sharemarket in the latest trading session?
The S&P/ASX 200 closed stronger, rising 23.8 points (about 0.58%) to 4,147.7 as investors bought industrial stocks amid renewed hopes for a solution to the European debt crisis.
Why did resource stocks drag the market despite the index rising?
The article says gains were broad-based except for the resource sector. While industrials and banks climbed, many resource stocks underperformed — though gold miners were a notable exception — contributing to the sector dragging overall market performance.
How did Australia's big four banks perform and which banks led the gains?
All four major banks closed higher. Commonwealth led the gains to around $55.41, Westpac, ANZ and National Australia Bank also rose, reflecting strength in the financials during the session.
What drove the strong performance of gold miners and Newcrest Mining?
Goldminers benefited from a higher spot gold price (about US$1,606.06 an ounce). Newcrest Mining jumped after reporting it exceeded its 2011–12 copper production targets and met its gold production forecast.
What issues affected OZ Minerals and Energy Resources of Australia (ERA)?
OZ Minerals fell after revealing a sharp quarterly jump in production costs. Energy Resources of Australia edged down after narrowing its first-half net loss, according to the article.
How did major miners BHP Billiton and Rio Tinto fare in the market?
BHP Billiton closed higher at about $30.97, while Rio Tinto fell to around $50.51, reflecting divergent moves among large resource companies during the session.
Why did Qantas shares surge and what alliance talks were mentioned?
Qantas shares soared to $1.08 after the airline confirmed it was in talks with several carriers, including Dubai-based Emirates, about potential alliances — news that excited investors.
What corporate news affected Wesfarmers and Caltex Australia share prices?
Wesfarmers rose after reporting higher sales at its Coles supermarkets, despite a downturn at Target and no change at Kmart. Caltex Australia’s shares lifted when it announced plans to close its Sydney oil refinery and replace it with an import terminal.
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