Australian Stock Market Report

Australian stock market wrap for Tuesday, 7th June 2016

In overnight sessions the US major averages posted solid gains across all sectors and crude oil closed near its seven months high, all pointing to strong leads for the Australian market open

The ASX 200 close higher by 10 points or 0.2% to 5371

The daily trading range was 32 points with the low of the session of 5360 and the high of the session at 5392

Market breadth was relatively flat with 90 advancing stocks versus 97 declining stocks and 13 stocks unchanged

US dollar weakness and continued strength in the crude oil contract saw the ASX Energy sector dominate in today’s session closing higher by 1.7%

Liquefied Natural Gas led the components higher 13.1%, Santos was up 4.05% and Worley Parsons was higher by 3.3%

The Material sector also demonstrated relative strengths to the overall market closing up 1.13%

Western Areas was higher by 6.9%, Pact Group Holdings was up 3.6%, and Sandfire Resources was up 3%

The resource bellwethers BHP Billiton the Rio Tinto closed to the upside with BHP higher by 2.9% or $.56 to $19.78 and Rio Tinto was up 1.8% or $.82 to $46.04

The Financial sector closed positive by 0.22%

With Cromwell property up 1.4%, IOOF Holdings up 1% and OZ Forex group up 0.9%

The big four banks were mixed with ANZ down 0.4% or $.10 to $24.86 the Commonwealth Bank was up 1% or $.74 to $77.34, National Australia Bank was down 0.1% or three cents to $26.59 and Westpac was higher by 0.8% or $.25 to $30.51

The Consumer Staple sector was the weakest sector in today’s trading down 1.04%

Bellamy’s Australia was down 2.8%, Treasury Wine Estates was down 2.6% and Asaleo Care was down 1.9%

In the economic news,

The Reserve Bank of Australia has decided to hold the cash rate at a record low of 1.75%

The Reserve Bank Governor Glenn Stevens said in a statement that the economy has been growing at a slower than average pace and that inflation was expected to remain low for quite some time. He also said that the board was content to keep rates on hold for the time being

These statements caused an immediate reaction in the Australian dollar with the currency moving strongly to the upside as traders had priced into the currency the reserve bank lowering interest rates at this meeting.
The five most active stocks were Spark Infrastructure with a volume 120.89 million, Fortescue Metals with 24.70 million, Qantas with 19.09 million, Greencross with 17.88 million and Liquefied Natural Gas with 14.25 million shares changing hands

The five best performers were Liquefied Natural Gas up 13%, Western Areas 6.9%, Santos 4.05%, Mineral Resources 3.7%, and Monadelphous Group of 3.7%

The five worst performers were Greencross down 7.8%, Sky Network Television down 3.7%, Nine Entertainment down 2.95%, Bellamy’s Australia down 2.8%, and Treasury Wine Estates down 2.6%

The Australian dollar is higher in the Asian session up 0.92% to 74.34 US cents

Spot Gold is marginally lower by 0.2% to US$1245

And crude oil is flat on the session at $49.69 USD

This has been the Australian stock market closing report for Tuesday, 7 June 2016 and I have been your host Aaron Furst, I’ll see you again next time
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