Australian Sharemarket Surges on US Interest Rate Hike Scepticism

The Australian sharemarket kicked off the month of March on a bullish note, with the benchmark All Ordinaries Index closing 31.2 points, or 1.08 per cent, higher at 2911.1. The rally was led by industrial stocks, with blue-chips such as Lend Lease, Coca-Cola Amatil, and Brambles driving the gains. Telcos were also in favour, with AAPT, Telstra, and Cable & Wireless Optus making significant strides. In contrast, the resources sector struggled, with BHP and WMC experiencing losses.

Key Takeaways:

• The Australian sharemarket surged by 1.08 per cent, with the All Ordinaries Index closing at 2911.1.
• Industrial stocks, particularly blue-chips, led the gains, with Lend Lease, Coca-Cola Amatil, and Brambles making significant strides.
• Telcos, such as AAPT, Telstra, and Cable & Wireless Optus, were also major winners.
• The resources sector struggled, with BHP and WMC experiencing losses due to concerns over the resources giant's plans to unwind the holding company Beswick Pty Ltd.
• Fortune 500 companies such as Lend Lease and Coca-Cola Amatil witnessed significant price movements.
• The banking sector saw a strong performance from National Australia Bank, with a 45 cent gain.

Statistics:

• The All Ordinaries Index closed at 2911.1, a gain of 31.2 points or 1.08 per cent.
• The March share price index contract on the Sydney Futures Exchange was 40.0 points stronger at 2930.0 on volume of 9277 contracts.
• Preliminary national turnover was 328.95 million shares traded worth $836.19 million.
• Rising stocks outnumbered falling stocks 580 to 555, with 392 stocks remaining steady.
• The spot price of gold bullion in Sydney was $US286.70, with the gold index adding 5.5 points to 1008.6.

Sources:

• Sydney Morning Herald, Mar 01, 1999
• ASIA PULSE (C) 1999 Asia Pulse Pte Ltd News Provided by COMTEX (http://www.comtexnews.com)