Australian Sharemarket Bounces Higher on Telco and Blue-Chip Gains

Strategic Insights -

The Australian sharemarket posted significant gains on February 17, 1999, driven by telco and blue-chip stocks. The all ordinaries index rose 22.8 points to 2882.2, while the all industrials index added 56.6 points to 5228.0. The overnight rise on Wall Street also contributed to the positive start for the local bourse. Market analysts attributed the gains to a sound reporting period, which boosted investor confidence.

Key Takeaways:

  • The all ordinaries index climbed 22.8 points to 2882.2, while the all industrials index added 56.6 points to 5228.0.
  • Telstra rose 26.1 cents to $8.47, while rival Cable & Wireless Optus firmed 11 to $3.52.
  • One.Tel retreated 74.3 to $11.887 after shedding some of the gains made following its announcement of a deal with News Corp and PBL.
  • The bank index charged 49.8 points higher to 6615.1, with Westpac leading the gains at 31 to $10.58.
  • Funding manager Tyndall Australia soared 32 cents to $2.97 on the back of a £738 million takeover bid by Royal & Sun Alliance plc.
  • Keycorp's announcement of the world's smallest mobile EFTPOS terminal fueled a 20.8 cent rise in its share price to $2.558.
  • PC photography and Internet company IXLA surged 33.5 to $1.87 after announcing a deal with Eastman Kodak company.

Statistics:

  • The all ordinaries index rose 22.8 points, representing a 0.79% increase to 2882.2.
  • The all industrials index rose 56.6 points, representing a 1.09% increase to 5228.0.
  • Preliminary national turnover was 384.12 million stocks traded for $A1.0 billion ($US.63 billion).
  • The spot price of gold bullion in Sydney was $US285.25 an ounce, down from yesterday's close of $US288.0.
  • The March share price index contract on the Sydney Futures Exchange jumped 10 points to 2878 points, representing a 0.35% increase.

Sources:

  • "The Australian" (no date mentioned)
  • "Asia Pulse" (C) 1999 Asia Pulse Pte Ltd
  • "COMTEX" (http://www.comtexnews.com)