Stocks Jump As Optimism Returns
Source: www.businessday.com.au
The Australian share market has opened stronger following a positive lead from Wall Street where investor sentiment improved ahead of the release of key economic data.
In early trade, the benchmark S&P/ASX200 was up 65 points, or 1.7 per cent, at 3951.9, while the broader All Ordinaries had gained 59.3 points, or 1.5 per cent, to 3942 points.
Shaw Stockbroking senior dealer Jamie Spiteri said the positive lead from overseas was being pushed along by a number of factors, including accelerated activity on the final day of the financial year.
Good news from DJs
Upmarket retailer David Jones signalled the economic downturn may be waning after recent strong sales prompted it to boost its profit guidance.
"David Jones coming out with some positive guidance is giving a good uplift right across that retail sector,'' Mr Spiteri said.
David Jones shares rose sharply within minutes of the open, marking the biggest gain in two months. It as up 44 cents, or 11 per cent, at $4.57.
Among the major miners, BHP Billiton was up 58 cents to $34.48 and rival Rio Tinto had gained $1.78 to $52.05.
The major banks also were stronger.
Commonwealth Bank was up 73 cents to $39.64, ANZ had gained 21 cents to $16.42, National Australia Bank rose 32 cents to $22.69 and Westpac lifted 32 cents to $20.10.
Wesfarmers was up 49 cents to $22.47, Woolworths had gained 35 cents to $26.03, Harvey Norman lifted 21 cents to $3.25 and JB Hi-Fi rose 33 cents to $15.39.
Oil price lifts energy stocks
"Strong oil prices have seen an uplift in stocks like Woodside, Santos, and Oil Search, as well,'' Mr Spiteri said.
Woodside was up $1.23 at $43.76, Santos had put on 28 cents to $14.68 and Oil Search had gained 16 cents to $5.47.
Also making news, junior iron ore explorer Iron Ore Holdings has increased the mineral resource estimate for its Iron Valley iron ore project in Western Australia by 50 per cent.
Its shares gained 4 cents, or 4.76 per cent, to 88 cents.
Air conditioning and refrigeration company Hastie Group has won two contracts in the United Kingdom worth 19 million pounds ($38.8 million). Hastie shares rose 0.5 cents to $1.285.
The spot price of gold in Sydney was $US939.15 per fine ounce, up $US1.05 on Monday's close of $US938.10.
Among the gold miners, Newcrest was up 30 cents to $30.25 and Lihir Gold was up one cent to $2.94.
The top-traded stock by volume was Environmental Clean Technologies Ltd, with 13.75 million shares worth $1.03 million.
Its shares were flat at 7.4 cents.
Overall turnover was 369.22 million shares worth $653.3 million, with 453 stocks up, 239 down and 343 unchanged.
Wall Street shares jumped overnight as investor sentiment turned upbeat that consumer confidence and employment figures out later this week would show signs of recovery from the prolonged recession.
The Dow Jones Industrial Average gained 90.99 points, or 1.1 per cent, to end at 8529.38. The Standard & Poor's 500 Index was up 8.33 points, or 0.9 per cent, at 927.23. The Nasdaq Composite Index was up 5.84 points, or 0.3 per cent, at 1844.06.
"US stocks rebounded strongly as the much higher oil price boosted energy stocks," wrote St George Bank chief economist Besa Deda. "Financials were also a key driver of the market on growing expectations that the US recession is improving." Economic news
In economic news due out today, the Reserve Bank of Australia releases financial aggregates data for May.
The Housing Industry Association releases new home sales data for May.
In company news, Macquarie Communications Infrastructure Group holds a security holder meeting for a vote on the Canada Pension Plan Investment Board's proposal to take control of the company.
Allied Brands and Iatia hold extraordinary general meetings, while Eneabba Gas and Prairie Downs Metals hold general meetings.
The Mining North Queensland conference concludes, while Ethical Investor hosts its second annual Green Marketing Forum.Yesterday, the Australian share market closed slightly lower, after directionless trade ahead of the financial year end.
