Market Rallies on Stronger Metal Prices and Earnings Reports

Strategic Insights -

The Australian market staged a solid recovery yesterday, driven by stronger metal prices and good earnings reports from stocks such as News Corp and CRA. The market, which had been battered earlier in the week, gathered pace towards the end of the day, with the All Ordinaries Index closing up 20.6 points at 2099. Volume was an improved 222.8 million shares worth $596.7 million, with the Share Price Index stronger due to short covering. Metal prices rebounded, lifting the All Metals Index 1.2 per cent to 943.7, and giving stocks such as CRA some much-needed relief.

Key Takeaways:

  • The Australian market staged a solid recovery, driven by stronger metal prices and good earnings reports from stocks such as News Corp and CRA.
  • The All Ordinaries Index closed up 20.6 points at 2099, driven by a strong early rise and a healthy recovery in stocks.
  • Volume was an improved 222.8 million shares worth $596.7 million, with the Share Price Index stronger due to short covering.
  • Metal prices rebounded, lifting the All Metals Index 1.2 per cent to 943.7, giving stocks such as CRA some much-needed relief.
  • BHP rose 26 cents to $18.04, CRA recovered 26 cents to $10.24, and Western Mining lifted 23 cents to $8.46.
  • News Corp was boosted 25 cents to $7.09 on 12.2 million shares, after some heavy selling earlier in the week.
  • The media sector was helped along by a 10.9 per cent jump in Rural Press to $5.10, up 50 cents.
  • Banks failed to rally, with the National steady at $11.36, ANZ rising two cents to $5.59, and Westpac fimming three cents to $5.42, except for the Commonwealth Bank, which rose 14 cents to $10.24.

Statistics:

  • The All Ordinaries Index closed up 20.6 points at 2099.
  • Volume was an improved 222.8 million shares worth $596.7 million.
  • The Share Price Index was stronger, with short covering pushing it up 23 points to 2120.
  • Metal prices rebounded, lifting the All Metals Index 1.2 per cent to 943.7.
  • Tin had the strongest rise, followed by nickel and copper.
  • The dollar ended below 76 US cents at 75.93.
  • Against the trade-weighted index, it ended 0.4 lower at 54.5.

Sources:

  • "Market Rallies on Stronger Metal Prices and Earnings Reports" (no source cited)
  • Data from the Australian Securities Exchange (no source cited)
  • Industry reports and news articles (no specific sources cited)