Australian Stock Market Report

This is the Australian stock market closing report for Thursday, 26 May 2016

 

In overnight sessions the US major averages were higher by 0.7% and the commodity index finished up 1.2%

 

The positive leads suggested a strong day for the ASX 200, however the heavyweight financial sector was a drag on the benchmark index

 

The ASX 200 closed higher by 0.3% or 15 points to 5388

 

The daily trading range was 48 points with the high of the session of 5402 and the low of the session at 5354

 

Market breadth was relatively even with 98 advancing stocks versus 85 declining stocks and 17 stocks unchanged

 

With the US dollar softer and commodity related benchmarks rallying overnight this resulted in a very strong finish for the Metals and Mining sector, which closed higher by 2.26%

 

Perseus Mining led the components closing up 11.6%, Iluka Resources was up 7.9% the lithium and borax miner Orocobre was higher by 6.15%

 

The Energy sector jumped 1.96% with Whitehaven Coal up 9.3%, Santos higher by 4.9% and WorleyParsons up 4.6%

 

The Material sector was also a strong performer closing up 1.69%

Independence Group was up 5.4%, Western Areas higher by 3.8% and Syrah Resources up 3.7%

 

BHP Billiton jumped $.51 or 2.7% to close it $19.41 and Rio Tinto was up $.45 or 1% to $45.48

 

The Financial sector moved in alignment with the overall market to close up 0.31%

 

CYBG dominated for the second day in a row closing up 4.4%, OZ Forex was up 2.2% and QBE Insurance Group was higher 2.15%

 

The big four banks were mixed with ANZ closing higher by 1% to $25.54, The Commonwealth Bank was up 0.26% to close at $78.59, National Australia Bank was down 0.44% closing at $27.36 and Westpac was up 1% to close at $30.75

 

The Consumer Staples sector was slammed in today’s trading down 2.08%

 

Wesfarmers led the components lower by 3.6%, Asaleo Care was down 1.25% and Woolworths closed out the session 1.2% lower

 

 

In economic news

 

Official figures from the Australian Bureau of Statistics show that new business capital expenditure fell by 5.2% in the March quarter.

 

Investment in buildings and structures fell 7.9% and investment in equipment, plant and machinery fell 1% for the quarter.

 

With business capital expenditure on a year on year basis falling 15.4%

 

In another report from the Australian Bureau of Statistics

 

The data indicated that the valuation of funds under management in the Australian funds management industry decreased $21.8 billion or 1% in the 3 months to March 31.

 

The main catalysts for the devaluation was a fall in the ASX 200 by 4%, the MSCI world index excluding Australia fell 0.9% and the Australian dollar moved higher 4.8%

 

The five most active stocks were Telstra Corporation with a volume of 22.75 million, South 32 with 17.67 million, Spotless with 17.11 million, Fortescue Metals with 15.27 million and Scentre with a volume of 13.36 million shares changing hands

 

The five best performers were Programmed Maintenance higher 17.65%, Whitehaven Coal up 9.3%, Iluka Resources higher 7.9%, Select Harvests up 5.85% and Independence Group up 5.4%

 

The five worst performers were Spotless down 9.9%, Ardent Leisure down 3.9%, Suncorp Group down 3.6%, Wesfarmers down 3.6% and Seven West Media lower 3.2%

 

The yield on the 10 year bond is currently trading at 2.290%

 

The Australian dollar is currently flat in the Asian session trading at 72.00 US cents

 

Spot Gold is higher by 0.4% to $1229 USD

 

And Crude oil is higher by $.35 or 0.7% to $49.91

 

This has been the Australian stock market closing report for Thursday, 26 May 2016, and I have been your host, Aaron Furst, I’ll see you again next time

 

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