Resources retreat, but market rises on strength of big banks
At the close, the benchmark S&P/ASX 200 Index was up 21.8 points, or 0.43 per cent, at 5100. The broader All Ordinaries was up 21.5 points, or 0.42 per cent, at 5090.3.
IG Markets institutional dealer Chris Weston said there was no real explanation for why the big four banks were all higher.
"It's been a tale of some sort of variance in the mining space, but banking stocks have really been on fire and that's really why the market's been moving up," he said. "There's no real smoking gun."
He said investors were keeping an eye on the flight of capital from emerging Asian markets to the US and European markets.
"The prospect of a negative situation in that region is really escalating," he said.
Among the banks, NAB gained 57¢ to $32.14, Commonwealth Bank added 83¢ to $71.10, ANZ was up 17¢ at $29.73, and Westpac rose 15¢ to $31.29. Macquarie Group gained 80¢ to $44.60.
In the resources sector, BHP Billiton dropped 80¢ to $35.74, after its weaker than expected annual profit result announced late on Tuesday.
Oil and gas outfit Woodside also fell, despite a rise in its half-year profit due to strong production from its huge Pluto gas plant. Its shares dropped 60¢ to $38.10.
Other energy and mining stocks performed better, with Rio Tinto gaining 9¢ to $59.60, Fortescue added 4¢ to $4.09, and Oil Search was 4¢ higher at $8.25.
The dollar traded largely flat, ending at US90.36¢, from US90.45c on Tuesday.
Currency traders were looking to the Federal Open Markets Committee minutes (out early Thursday, Australian time) for indications of whether the US Federal Reserve will start winding back its $US85 billion-a-month bond-buying program in September.
Any talk of tapering was likely to push the Australian dollar lower, CMC Markets foreign exchange dealer Tim Waterer said. AAP
HOW THE MARKET MOVED
YESTERDAY (%)
SOURCE: BLOOMBERG
These are the percentage moves in the 10 sectors that
make up the S&P/ASX 200 Index.
Info tech 1.82
Utilities 1.20
Industry 0.96
Financials 0.88
Health 0.69
Cons stap 0.54
Cons disc 0.49
Energy -0.09
Telecoms -0.37
Materials -0.73
Frequently Asked Questions about this Article…
The article says the benchmark S&P/ASX 200 closed up 21.8 points (0.43%) at 5100 and the All Ordinaries rose 21.5 points (0.42%) to 5090.3, driven mainly by strong gains among the big banks that offset falls in several resource companies.
According to the article, the major bank moves were: NAB +57¢ to $32.14, Commonwealth Bank +83¢ to $71.10, ANZ +17¢ to $29.73, Westpac +15¢ to $31.29, and Macquarie Group gained 80¢ to $44.60 — contributors to the market’s upside.
The article reports BHP Billiton dropped 80¢ to $35.74 after a weaker‑than‑expected annual profit result, and Woodside fell 60¢ to $38.10 despite a rise in its half‑year profit driven by strong Pluto gas plant production.
Yes. The article notes Rio Tinto gained 9¢ to $59.60, Fortescue added 4¢ to $4.09, and Oil Search was 4¢ higher at $8.25, even though some other resources and energy names fell.
Sector moves reported in the article (percent changes) were: Info tech +1.82%, Utilities +1.20%, Industry +0.96%, Financials +0.88%, Health +0.69%, Consumer staples +0.54%, Consumer discretionary +0.49%, Energy −0.09%, Telecoms −0.37%, and Materials −0.73%.
The Australian dollar traded largely flat, ending at US90.36¢ (from US90.45¢). Currency traders were watching the upcoming Federal Open Markets Committee minutes for signals on whether the US Federal Reserve might start winding back its US$85 billion‑a‑month bond‑buying program in September.
Yes. IG Markets dealer Chris Weston said investors were keeping an eye on a flight of capital from emerging Asian markets to the US and Europe, and he warned the prospect of a negative situation in that region was escalating.
The article quotes CMC Markets foreign exchange dealer Tim Waterer saying any talk of tapering the Fed’s bond‑buying program was likely to push the Australian dollar lower.
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