THE sharemarket closed higher yesterday, on investor confidence that the euro zone would soon resolve its debt crisis.
The S&P/ASX 200 Index gained 40.2 points, or
0.96 per cent, to 4244.5.
The market shot up almost 1 per cent at the open after a strong lead from Wall Street, better than expected US company results, and news that Slovakia would today become the final euro-zone country to vote in favour of an expanded European rescue fund.
Ord Minnett equities consultant Ian Merrick said the Slovakian vote made investors more confident that the euro zone would approve the French and German plan for resolving the European debt crisis.
Shares in Rio Tinto closed $1.88, or 2.8 per cent, higher at $69.34 after the company set a quarterly record for iron ore sales.
BHP Billiton put on 56?, or 1.5 per cent, to $37.64.
"People are just looking for confidence-building [news] and with Rio and what's possibly happening in Europe now, that gives people a bit more confidence to go into [the market]," Mr Merrick said.
Funds continued to flow from defensive sectors such as consumer staples which fell 0.16 per cent to growth areas, including energy stocks, which rose 1.07 per cent.
Linc Energy rose 3?, or
1.5 per cent, to $2.10 after it said it had finalised a
$US236 million purchase of oilfields in the south of the US from ERG Resources.
The weakest stock of the top 100 was Caltex, which fell 37?, or 2.8 per cent, to $12.81.
Qantas firmed 1? to $1.57 despite the airline announcing it was grounding five planes and cutting up to 100 domestic flights due to industrial action.
AMP rose 9?, or 2.2 per cent, to $4.20 after it announced it had appointed former Qantas chief financial officer Colin Storrie as its new CFO.
The best performer in the top 100 was mineral sands producer Iluka Resources, which climbed $1.49, or
9.6 per cent, to $16.99. The miner reported that it had lifted September-quarter production by almost 10 per cent and that the fundamentals of supply and demand remained solid.
Virgin Blue rose 1?, or
3.2 per cent, to 33? after the Australian Competition and Consumer Commission said it had approved the airline's partnership with Singapore Airlines.
The spot gold price edged up $US4.40 to $US1671.30 an ounce by the close of the Australian session.
Market turnover was
1.96 billion shares worth $5.68 billion, with about seven stocks rising for every two that fell on the S&P/ASX 100.
Frequently Asked Questions about this Article…
Why did the Australian sharemarket (S&P/ASX 200) rise on that trading day?
The S&P/ASX 200 rose on investor confidence that the euro zone would move to resolve its debt crisis — helped by Slovakia voting on the expanded European rescue fund — as well as a strong lead from Wall Street and better-than-expected US company results.
How much did the S&P/ASX 200 index gain and what was the closing level?
The S&P/ASX 200 gained 40.2 points, or 0.96%, and closed at 4,244.5.
Which sectors were favoured by investors and what sector shifts did the article report?
Funds flowed away from defensive sectors such as consumer staples (which fell 0.16%) into growth areas, notably energy stocks (which rose about 1.07%). This sector rotation reflected investors seeking more confidence-driven exposure.
How did major miners like Rio Tinto and BHP Billiton perform and why?
Rio Tinto rose after reporting a quarterly record for iron ore sales, closing higher at $69.34, while BHP Billiton also gained, closing around $37.64. Positive commodity results and improved market confidence helped lift miner shares.
What drove Iluka Resources’ strong share performance?
Iluka Resources was the best performer in the top 100, climbing about 9.6% to $16.99 after reporting September-quarter production up almost 10% and saying supply and demand fundamentals remained solid.
What corporate deals or transactions were mentioned that affected smaller energy stocks?
Linc Energy rose after finalising a US$236 million purchase of oilfields in the southern US from ERG Resources, a deal cited as supporting the stock’s gain.
How did airline and related shares react to industry news?
Qantas shares firmed to $1.57 despite the airline grounding five planes and cutting up to 100 domestic flights due to industrial action. Virgin Blue rose after the ACCC approved its partnership with Singapore Airlines.
What were the market-wide trading figures and commodity movements noted in the article?
Market turnover was about 1.96 billion shares worth $5.68 billion, with roughly seven stocks rising for every two that fell on the S&P/ASX 100. Spot gold edged up US$4.40 to US$1,671.30 an ounce by the close of the Australian session.
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