Stocks back to levels before Greek crisis

AUSTRALIAN shares have recovered the lost ground from

By InvestSMART · 29 Oct 2011

By InvestSMART ·
29 Oct 2011

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AUSTRALIAN shares have recovered the lost ground from

the Greek debt crisis, adding

$57 billion in value over the past week to close at their strongest since August 2.

Continuing overseas market euphoria in expectation of a debt deal with Greece, and then on Thursday the news that it had been achieved, propelled the Australian market over the week back to the level it was before the euro-zone

crisis unfolded in early August.

Yesterday, however, it took

a breather. At the close, the

benchmark S&P/ASX 200 Index

was up 5.1 points, or 0.12 per

cent, at 4353.3.

Austock Securities senior client adviser Michael Heffernan said

Australian equities had absorbed

the news from Europe on Thursday, which led it to ease off yesterday.

Mr Heffernan said the market had performed extremely well throughout the week.

"The momentum now and

sentiment is decidedly different from what we'd seen a month ago," he said. "The mood is buoyant."

Among the miners sector, BHP Billiton rose 34?, or 0.9 per cent, to $38.69 and Rio Tinto gained 52?, or 0.8 per cent, to $70.22.

For the banks, it was a mixed

day, though changes were slight. Westpac lost 8? to $22.68, Commonwealth dipped 3? to $49.96, ANZ rose 8? to $22.08 and National

Australia Bank gained 12? to $25.99.

Macquarie Group was up 80? at $25.15 despite the investment bank downgrading its 2012 forecast. Macquarie said financial market volatility and uncertainty had reduced its income and caused a

24 per cent fall in first-half profit.

Qantas closed down 2.5? at $1.545. The company revealed at

its annual meeting yesterday that

continuing industrial action had cost it more lost revenue than the disruptions due to the Chilean

volcanic ash cloud earlier this year, or about $68 million so far and growing at $15 million a week.

Gold moved up sharply again, the spot price gaining $US18.73 to US1742.75 an ounce.

The dollar finished the Australian session up US1.4? at $1.0676 after reaching $US1.0753 overnight.

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Frequently Asked Questions about this Article…

Why did Australian shares recover to pre-Greek crisis levels?

Australian shares recovered as offshore markets rallied on hopes of a debt deal with Greece, and confirmation that a deal had been achieved pushed local sentiment higher. That overseas market euphoria helped the S&P/ASX 200 climb back to the level it was at before the early-August euro‑zone troubles.

How much market value did the ASX regain after the recovery?

The Australian market added about $57 billion in value over the past week and closed at its strongest level since August 2, according to the article.

What was the S&P/ASX 200 Index position after the rebound?

At the close reported in the article, the S&P/ASX 200 Index was up 5.1 points, or 0.12 percent, at 4,353.3.

How did major miners like BHP Billiton and Rio Tinto perform during the rebound?

Miners led gains: BHP Billiton rose to $38.69 (about a 0.9% lift) and Rio Tinto gained to $70.22 (about a 0.8% increase), reflecting stronger commodity and market sentiment.

What was the performance of the big Australian banks during the session?

Bank moves were mixed but modest: Westpac closed at $22.68, Commonwealth Bank at $49.96, ANZ at $22.08 and National Australia Bank at $25.99, with small rises and dips across the big four on the day.

Why did Macquarie Group shares rise despite a downgraded forecast?

Macquarie Group was trading higher at $25.15 even though the investment bank downgraded its 2012 forecast. The firm said financial market volatility and uncertainty had reduced its income and caused a 24% fall in first‑half profit, but the market still pushed the share price up that session.

How has industrial action affected Qantas and its share price?

Qantas shares fell 2.5% to $1.545 after the airline revealed at its annual meeting that continuing industrial action had cost more lost revenue than the earlier Chilean volcanic ash disruptions—about $68 million so far and rising at roughly $15 million a week.

What happened to gold prices and the Australian dollar during the market move?

Gold moved up sharply, with the spot price gaining US$18.73 to US$1,742.75 an ounce. The Australian dollar finished the reported session at US$1.0676 after peaking at US$1.0753 overnight.