THE sharemarket closed on Wednesday at its highest point in 17 months, but still off the day's highs, as positive leads from overseas boosted the local market.
The benchmark S&P/ASX 200 rose 7.8 points, or 0.2 per cent, to 4583.8, while the broader All Ordinaries was up 10.5 points, or 0.2 per cent, to 4591.8.
"We've seen a bit of up and down from the market, but in general terms it hasn't been doing a huge amount," said CommSec analyst Steven Daghlian.
Among the sectors, health jumped 2 per cent, energy added 1.5 per cent, consumer discretionary rose 0.9 per cent and materials inched up 0.5 per cent. Telecoms and financials bucked the trend, slipping 1.3 and 0.3 per cent respectively.
The ASX 200 pushed above 4600 for the first time since July last year after Wall Street and European markets finished higher, with five-year highs in Germany lifting markets across the continent.
Higher commodity prices helped boost the resources sector, with iron ore at $US124.90 a tonne.
Iron ore miner Fortescue was the biggest winner among the miners, up 1.7 per cent to $4.28.
BHP rose 1 per cent to $35.76 after it said it would sell its interest in the Browse LNG joint venture, while rival Rio Tinto jumped 0.7 per cent to $62.20.
"With the miners, you have to take a step back and compare it to the rest of the market this year - the Aussie market is up about 12 per cent this year, the mining sector's down 1.5 per cent, so the mining sector is still struggling and dragging its heels," said Mr Daghlian.
The expectation of more quantitative easing in the US saw the Australian dollar rise to three-month highs, fetching $US1.0541.
Linc Energy surged 25 per cent on Wednesday, adding to a 17 per cent jump on Tuesday, after news emerged that the company was in talks with Russian billionaire Roman Abramovich about opportunities for the company in Russia. The Brisbane-based company finished at $1.30.
Investors reacted sombrely to Coca-Cola Amatil's earnings guidance for 2012, despite an expected 5 per cent increase in profit growth. The shares slipped 2.6 per cent to $13.56.
Echo Entertainment announced a new chief executive, John Redmond, a former executive with casino groups such as Caesars, which was well received by the market as the shares added 3.2 per cent to finish at $3.52.
All the major banks recorded losses. ANZ slipped 0.8 per cent to $24.70, Westpac fell 0.4 per cent to $25.90, NAB dropped 0.2 per cent to $24.66 and CBA lost 0.1 per cent to $61.20. Westpac, NAB and Bank of Queensland will hold their annual meetings on Thursday.
Frequently Asked Questions about this Article…
What happened to the ASX 200 and All Ordinaries on Wednesday?
The Australian sharemarket closed at its highest point in 17 months on Wednesday. The S&P/ASX 200 rose 7.8 points (0.2%) to 4,583.8 while the broader All Ordinaries gained 10.5 points (0.2%) to 4,591.8. The ASX 200 also pushed above 4,600 earlier in the session for the first time since July last year.
Which sectors led gains on the ASX and which sectors fell?
Health led the gains, up about 2%, followed by energy (+1.5%), consumer discretionary (+0.9%) and materials (+0.5%). Telecoms and financials bucked the trend, slipping about 1.3% and 0.3% respectively.
Why did the miners and resources stocks get a boost and how did major miners perform?
Higher commodity prices, particularly iron ore at about US$124.90 a tonne, helped the resources sector. Fortescue Metals led miners with a 1.7% rise to $4.28, BHP climbed 1% to $35.76 after announcing plans to sell its interest in the Browse LNG joint venture, and Rio Tinto rose 0.7% to $62.20. Despite these moves, the mining sector was still down about 1.5% year-to-date compared with the broader Aussie market's roughly 12% gain this year.
How did the Australian dollar move and what drove that move?
The Australian dollar rose to three-month highs, fetching about US$1.0541. The lift was attributed to expectations of more quantitative easing in the United States, which pushed the AUD higher against the US dollar.
What caused Linc Energy's sharp share price rise?
Linc Energy surged 25% on Wednesday after reports the Brisbane-based company was in talks with Russian billionaire Roman Abramovich about opportunities in Russia. The jump added to a 17% rise the previous day, taking the stock to $1.30.
How did investors respond to Coca-Cola Amatil's earnings guidance?
Investors reacted cautiously to Coca-Cola Amatil's guidance for 2012—even though the company expected about 5% profit growth—sending the shares down 2.6% to $13.56.
Did any corporate leadership or management changes move stock prices?
Yes. Echo Entertainment announced John Redmond, a former executive with casino groups including Caesars, as its new CEO. The market welcomed the appointment and Echo's shares rose about 3.2% to $3.52.
How did the major Australian banks perform and are there any upcoming events investors should watch?
All the major banks recorded small losses: ANZ slipped 0.8% to $24.70, Westpac fell 0.4% to $25.90, NAB dropped 0.2% to $24.66 and CBA lost 0.1% to $61.20. Investors should note that Westpac, NAB and Bank of Queensland were scheduled to hold their annual meetings on Thursday.
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