THE sharemarket closed higher yesterday after better than expected US jobs figures boosted global sentiment for equities.
However, investors are still showing signs of anxiety over the debt crisis in Greece. The benchmark S&P/ASX 200 Index rose 44.8 points, or 1.05 per cent, to 4296 points, while the broader All Ordinaries Index gained 44.5 points, or 1.03 per cent, to 4364.6 points.
National turnover was 1.78 billion shares worth $4.22 billion - 610 stocks were up, 389 down and 398 were unchanged.
IG Markets strategist Stan Shamu said trading on the local bourse had started strongly on the back of US data on Friday night showing a lower unemployment rate and stronger jobs creation.
"But, unfortunately, we haven't been able to extend upon those gains because of the ongoing Greece issues," Mr Shamu said.
"We're still yet to find anything from Greece. The latest reports are suggesting that the talks have actually stalled and it might extend to the equity markets today."
Greece is in talks with the European Union, the International Monetary Fund and the European Central Bank on further action needed to unlock a new euro zone rescue deal worth ?130 billion ($158.6 billion) pending since October.
The company reporting season gains momentum on the Australian market this week, BHP Billiton, Rio Tinto, News Corp, Telstra Corp and Newcrest Mining announcing their financial results.
BHP Billiton, which releases its half-year results tomorrow, was 61? higher at $38.21. Rio Tinto lifted $1.80 to $72.30.
The Australian developer of one of the world's biggest uranium assets, Extract Resources, improved 3? to $8.60 as it said it was still seeking alternative options after a Chinese state-owned company inched closer to making a takeover offer.
The price of gold in Sydney closed at $US1734.77 ($1610.59) per fine ounce, down $US23.23 from $US1758 on Friday.
National Australia Bank, which releases its trading update today, advanced 42? to $24.17.
Investment firm Perpetual was 77? higher at $21.01 after its chief executive stood down because of differences with the board over strategy.
The industrial services company Spotless was up 7? at $2.50 after it gave in to shareholders' demands and said it would allow its private-equity suitor to cast its eye over the business.
Telstra, 4? better off at $3.38, is expected to report a double-digit increase in net profit as it expanded its market share and kept costs in check during the first half of 2011-12.
Frequently Asked Questions about this Article…
How did the latest US jobs figures influence the ASX and Australian share market?
Better-than-expected US jobs data lifted global sentiment and helped the S&P/ASX 200 climb 44.8 points to 4,296, while the All Ordinaries rose 44.5 points to 4,364.6. IG Markets strategist Stan Shamu said trading on the local bourse started strongly on the back of the US unemployment and jobs-creation data.
Why are investors still worried about the Greece debt crisis and could it affect Australian shares?
Investors remain anxious because talks between Greece and the EU, IMF and ECB on a €130 billion rescue package have reportedly stalled. Those stalled negotiations could weigh on global risk sentiment and limit further gains in Australian equities if the situation worsens.
Which major companies are driving momentum in the Australian reporting season this week?
The reporting season gained traction with big names announcing results or updates, including BHP Billiton, Rio Tinto, News Corp, Telstra and Newcrest Mining — releases that can move sectors and the broader Australian market.
What moves did BHP Billiton and Rio Tinto shares make and why should investors care?
BHP Billiton was higher at $38.21 ahead of its half-year results, and Rio Tinto rose $1.80 to $72.30. Large miners’ results and guidance can influence resource stocks and overall market sentiment, so investors often watch these updates closely.
What happened with Extract Resources and how did that affect its share price?
Extract Resources’ shares rose to $8.60 after the company said it was seeking alternative options, following reports that a Chinese state-owned company was moving closer to making a takeover offer — a development that can attract investor interest in takeover targets.
How did gold prices move in Sydney and why might that matter to investors?
Gold in Sydney closed at US$1,734.77 (A$1,610.59) per fine ounce, down US$23.23 from US$1,758 on Friday. Changes in gold prices can reflect shifts in risk appetite and influence resource and mining stocks on the ASX.
What update was there on National Australia Bank (NAB) and its share performance?
National Australia Bank advanced to $24.17 as it prepared to release a trading update. Bank trading updates can provide insight into lending conditions, margins and the health of the domestic financial sector.
Why did Perpetual and Spotless shares move, and what corporate events drove those moves?
Perpetual jumped to $21.01 after its chief executive stood down over strategic differences with the board, while Spotless rose to $2.50 after agreeing to allow a private-equity suitor to review the business. Corporate leadership changes and potential takeover interest often affect investor confidence and share prices.
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