Australian Stock Market Report

Domestic GDP disappoints

This is the Australian stock market closing report for Wednesday, 1st June 2016

In overnight sessions the US major averages ended on a mixed note with the tech heavy NASDAQ closing up and NYSE benchmarks closing slightly lower.

The Greenback had a strong session which sent commodity related sectors lower suggesting that that momentum would spill over into ASX related sectors in today’s trading

The ASX 200 index closed down 55 points or 1.03% to 5323

The daily trading range was 72 points with the high of the session at 5378 and the low 5306

Market breadth of the benchmark index was dominantly negative with only 42 advancing stocks and 124 declining stocks and 34 stocks unchanged.

In economic news

The Australian Bureau of Statistics released the headline GDP figures which showed the overall Australian economy grew by 1.1% in the March quarter, and annually at a rate of 3.1%

A key point summary is that the major driver of growth for the March quarter came from exports reflected in the growth observed in mining production of 6.2%.

However domestically the Australian economy continued to demonstrate weakness

The report indicated that broad-based price falls were evident with the consumer price index falling 0.2%, and the overall price movement within the Australian economy falling 0.6% in the March quarter

The measure of national economic well-being the real net national disposable income figures came in flat at 0% or a seasonally adjusted 0.2%

Spending within the Australian domestic economy only rose 0.1% indicating continued weakness and lower inflation.

Demand for exports, increases demand for the Australian dollar, which saw Australian dollar jump half a cent on release of the figures.

The Energy sector was the weakest sector closing down 1.77%

Woodside Petroleum led the components lower 1.8%, Liquefied Natural Gas was down 1.7% and Oil Search was off 1.3%

The Materials sector wasn’t far behind closing to the downside 1.69%

CSR was down 5.3%, South 32 was lower by 4.5% and Western Areas was down 3.4%

BHP Billiton was down $.59 or 3.1% to $18.49 and Rio Tinto was down $.90 or 2% to $43.79

The Financial sector was down 1.09% with CYBG off 5.43%, Henderson Group down 4.6% and BT Investment Management down 3.4%

The big four banks all closed in the red with ANZ down $.28 or 1.1% to $25.20, The Commonwealth Bank was lower by $.93 or 1.2% to $76.50, National Australia Bank was down $.39 or 1.4% to $26.76 and Westpac was down 1.1% of $.33 to $30.37

The Consumer Staples sector moved lower in alignment with the overall benchmark closing down 1.04%

Metcash led closing down 5.85%, Tassal Group was down 2.4% and Blackmores was lower by 2.1%

The Australian dollar is currently higher by 0.3% to 72.55 US cents

The yield on the Australian 10 year Government bond is down 1.2 basis points at 2.29%

Spot Gold is marginally higher in the Asian session trading at $1219 USD

And Crude oil is down $.70 or 1.45% to $48.40

This has been the Australian stock market closing report for Wednesday, 1 June 2016, and I have been your host Aaron Furst, I’ll see you again next time

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