Australian Sharemarket Defies Negative Overseas Leads to Close Up

Strategic Insights -

The Australian sharemarket on Wednesday defied negative overseas market leads to close up, but off its highs, thanks to offshore money pouring into the domestic and New Zealand markets. The benchmark all ordinaries index closed 11.2 points, or 0.39 percent, higher at 2918.2, after losing ground on profit taking. The rally was led by futures and was inspired by offshore investors, with major players like News Corp and John Fairfax Holdings making significant gains.

Key Takeaways:

  • The Australian sharemarket closed up 11.2 points, or 0.39 percent, at 2918.2, despite initial losses.
  • Offshore money poured into the domestic and New Zealand markets, sparking a futures-led rally.
  • Media stocks, including News Corp and John Fairfax Holdings, led the market gains, with News Corp gaining 9 cents to 11.84 Australian dollars.
  • Kerry Packer's Publishing and Broadcasting, considering a stock market float of its Internet business PBL Online, gained 20 cents.
  • National Australia Bank slipped 8 cents, while Commonwealth Bank gained 5.1 cents.
  • Major resources companies, including BHP, WMC, and Rio Tinto, made significant gains, with Rio Tinto lifting 15.6 cents.
  • The gold index closed 5.8 points, or 0.54 percent, higher at 1085.3 points.
  • National turnover was 508.2 million shares traded, valued at 1.25 billion Australian dollars (800 million U.S. dollars).

Statistics:

  • The benchmark all ordinaries index closed 11.2 points higher at 2918.2.
  • The all industrials index closed up 18.9 points at 5308.1.
  • The all resources index closed up 5.2 points at 946.4.
  • News Corp gained 9 cents to 11.84 Australian dollars.
  • John Fairfax Holdings surged 16 cents, or 4.21 percent, on a turnover of 2.52 million shares.
  • Telstra Corp dipped in late trade, losing 15 cents, on a turnover of 12.08 million shares.
  • National turnover was 508.2 million shares traded, valued at 1.25 billion Australian dollars (800 million U.S. dollars).

Sources:

  • XINHUA, Canberra. "Australian sharemarket defies negative overseas leads to close up". February 3.
  • COMTEX, "News Provided by COMTEX (http://www.comtexnews.com)" (no date provided)