Australian shares gain ground in mixed trading session
Derek Rose |
The local share market has climbed its highest since Christmas Eve after the release of US jobs data suggesting the world’s largest economy is in overall good shape.
The benchmark S&P/ASX200 index on Monday finished up 41.5 points, or 0.48 per cent, to 8,759.4, while the broader All Ordinaries rose 46.8 points, or 0.52 per cent, to 9,092.7.
The gains came after a positive lead from Wall Street, with the S&P500 closing Friday at an all-time high after labour market data known as non-farm payrolls showed US unemployment declining and wages rising.
While the report pushed back expectations for the next Federal Reserve rate cut from April to June, Interactive Brokers senior economist José Torres said the report had boosted investor confidence in the US economy.
“The print signals that labour conditions remain healthy and that the (economic) cycle has legs,” he said.
Eight of the ASX’s 11 sectors were higher at midday, with utilities lower and materials and property basically flat.
The consumer discretionary sector was the biggest gainer, rising 2.1 per cent as Light & Wonder soared after settling a lawsuit with rival Aristocrat Leisure.
The pokies manufacturer climbed 18.0 per cent to an all-time high of $182.50 after agreeing to pay Aristocrat $US127.5 million ($190 million) for copying Aristocrat’s trade secrets in two slot machine games.
Light & Wonder CEO Matt Wilson blamed the intellectual property theft on a rogue ex-employee and said the settlement would allow his company to move forward without distraction or disruption.
Aristocrat rose 0.3 per cent to $57.39.
Elsewhere in the sector, Super Retail Group dropped 5.3 per cent to a six-month low of $14.89 after the Supercheap Auto owner said it expected to announce a first-half profit before tax of between $172 million and $175 million.
Chief executive Paul Bradshaw said the group had posted record sales but elevated promotional intensity had impacted margins, particularly at its sporting goods chain Rebel.
In the heavyweight mining sector, the iron ore giants fell, with BHP dropping 2.5 per cent to $46.51, Fortescue dipping 1.4 per cent to $22.40 and Rio Tinto declining 0.4 per cent to $142.43.
But goldminers shone as the safe haven metal traded above $US4,600 an ounce for the first time following reports the US was preparing for a possible strike on Iran.
Newmont grew 5.8 per cent to an all-time high of $166.59, Northern Star advanced 2.9 per cent to $25.43 and Westgold climbed 4.4 per cent to an all-time high of $6.60.
Rare earth miner Lynas climbed 4.8 per cent to $14.78 while lithium miners PLS and Liontown added 2.6 per cent and 4.9 per cent, respectively.
In the financial sector, all of the big four banks finished higher with ANZ advancing 1.2 per cent to $35.89, NAB growing 1.5 per cent to $41.62, CBA rising 0.6 per cent to $154.08 and Westpac expanding 0.5 per cent to $38.08.
But insurance companies fell amid the catastrophic bushfires in Victoria, which the Insurance Council of Australia declared on Sunday constituted a “significant event” and could be elevated to an “insurance catastrophe”.
Suncorp dropped 2.2 per cent to $17.08, IAG fell 3.6 to $7.73 and QBE finished down 1.4 per cent to $19.82.
Suncorp said that as of Sunday night, it had received 60 home and motor claims from the bushfires, as well as 80 from ex-Tropical Cyclone Koji in Queensland.
The Australian dollar was trading for 66.98 US cents, from 66.95 US cents at 5pm on Friday.
ON THE ASX:
* The S&P/ASX200 rose 41.6 points, or 0.48 per cent, to 8,759.4
* The broader All Ordinaries rose by 46.8 points, or 0.52 per cent, to 9,092.7
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 66.97 US cents, from 66.95 US cents at 5pm AEDT on Friday
* 105.83 Japanese yen, from 105.35 Japanese yen
* 57.41 euro cents, from 57.46 euro cents
* 49.86 British pence, from 49.85 British pence
* 116.52 NZ cents, from 116.60 NZ cents
AAP
