Australian Stock Market News Update

This is the Australian stock market closing report for Friday, 27 May 2016


In overnight sessions the US major averages were flat providing very few leads for the Australian stock market in today’s training however the commodity related components were slightly weaker suggesting the potential for profit-taking within the Australian commodity related sectors


The ASX 200 traded above the psychological resistance level of 5400 to close out the session 17 points or 0.3% higher to 5405


The day’s trading range was 39 points with the high of the session at 5427 and the low of session of 5388


Market breadth was positive with 114 advancing stocks versus 56 declining stocks and 30 stocks unchanged


The consumer staples bounced back in today’s session to close out the day the strongest sector up 1.02%


Asaleo Care led the components to close up 2.8%, Australian Agriculture was higher 2.7% and Bellamy’s Australia was up 2.1%


The Information Technology sector also perform strongly in today’s session closing higher by 0.99%


Aconex was higher 2.85%, Computershare was up 1.4% and MYOB Group was higher 1.2%


The Financial sector closed up 0.49%


With Medibank Private outperforming to the upside 1.9%, Perpetual was higher by 1.4% and Mirvac Group was up 1.3%


The big four banks were mixed with ANZ closing higher 1.2% or $.31 to $25.85, the Commonwealth Bank was up 0.4% of $.31 to $78.90 National Australia Bank was down 0.2% or six cents to $27.30 and Westpac was up 0.75% or $.23 to $30.98


The All Ordinaries Gold index was the weakest sector in today’s trading with Silverlake resources lower by 5.15%, Anglogold Ashanti lower 4.6% and Alacer Gold Corp down 3.9% the gold bellwether Newcrest Mining was down 1% or $.19 to $19.11


The resource bellwethers were down in today’s session with BHP Billiton off 0.2% or four cents to $19.37 and Rio Tinto was lower by 1.4% or $.65 to $44.93


There was no economic news session however the credit rating agency Finch provided commentary on Australia’s big banks


The credit agency noted that Australia currently has the worlds most indebted households and with the debit to income ratio measured by the reserve bank of Australia at record 186%


The report went on to state that people who bought houses between 2014 and mid-2015 maybe particularly vulnerable, as it was during a period of high and surging prices and weaker lending standards from the banks


For Australian mortgage holders, if the banks’ exposure became troublesome through bad debts, the banks would raise mortgage rates and fees to protect their profitability, creating the start of a downward cycle.


The five most active stocks were Fortescue Metals with a volume of 24.71 million, Telstra with 23.69 million, Qantas Airways with 17.3 million, South 32 with 16.71 million and Spotless with 14.75 million shares changing hands


The five best performers were Syrah Resources up 5.1%, Spotless higher 3.8%, GWA Group up 3.5%, Saint Barbara higher 3.5% and Aconex up 2.85%


The five worst performers were Qantas Airways down 3.85%, Myers Holdings down 3.1%, Evolution Mining lower by 2.8%, National Storage down 2.4% and Blackmores lower 2.15%


The yield on the Australian government bond is currently 2.263%


Australian dollar is up slightly to 72.18 US Cents


Spot Gold is flat on the session at $1222 USD


And Crude oil is down $.36 or 0.7% to $49.12


This has been the Australian stock market closing report for Friday, 27 May 2016, and I have been your host, Aaron Furst, I’ll see you again next time


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