Australian Sharemarket Closes Firmer Amid Christmas Window Dressing

Strategic Insights -

The Australian sharemarket followed the lead of Wall St to close firmer, driven by Christmas window dressing by fund managers. The benchmark all ordinaries index jumped 21.8 points to close at 2759.8. Key industrial stocks such as Lend Lease, Brambles, News Corp, and AMP saw significant buying activity, with AMP rebounding after a recent downward slide.

Key Takeaways:

  • The Australian sharemarket closed firmer, with the all ordinaries index rising 21.8 points to 2759.8, driven by Christmas window dressing by fund managers.
  • Key industrial stocks such as Lend Lease, Brambles, News Corp, and AMP saw significant buying activity, with AMP rebounding 59.5 cents to $19.955 after its $3.6 billion acquisition of UK life mutual National Provident Institution.
  • The bank index added 18.3 points to 6327.5, with National Australia Bank rising 11 to $24.71, Commonwealth Bank rallying 9.1 to $22.291, and Westpac fimming two to $10.47.
  • The takeover target GIO eased two to $5.36, while Colonel fell to $5.47, and National Mutual retreated seven to $2.88.
  • One.Tel Ltd tumbled 85 to $5.10, ending a recent bull run sparked by rumors that a foreign telecommunications company may be looking to take a stake in the newly-listed mobile phone reseller.
  • News Corp surged 39 to $10.45, its preferred scrip stacked on 30.5 to $9.42, while Kerry Packer's Publishing and Broadcasting rallied 14 to $6.93.

Statistics:

  • Preliminary national turnover was 387.52 million stocks changing hands for $1.09 billion.
  • Rising stocks outnumbered falling stocks 587 to 460 and 405 stocks remained steady.
  • The spot price of gold bullion in Sydney this afternoon was $US289.65 an ounce, compared to a close of $US289.90 yesterday.
  • The Nikkei in Japan was 377 points lower to 13776, while Hong Kong's Hang Seng was 45.4 points lower at 10350.6 in afternoon trade.
  • The ASX share price index contract on the Sydney Futures Exchange gained seven points to 2761.0, representing a 1.2 point premium on the cash market, with 20263 lots traded.

Sources:

  • Asia Pulse via COMTEX (Brisbane, Dec 22, 1998)
  • ASIA PULSE (C) 1998 Asia Pulse Pte Ltd News Provided by COMTEX (http://www.comtexnews.com)