Positive consumer sentiment saw the local share market defy a flat lead from Wall Street to climb above the 4000-point barrier by lunch. The miners rebounded from yesterday’s losses, while energy stocks were also strong.
In economic news, the Westpac–Melbourne Institute Index of Consumer Sentiment rose 12.7% to 100.1 in June from 88.8 in May. This was second largest amount since the survey began in 1974 and the largest increase in 22 years.
At lunch, the All Ords was up 64.8 to 3,998.4 and the ASX/200 gained 69.0 to 4,003.9. Over 870 million shares, or $1.8 billion had changed hands.
The Materials and Resources sector climbed 2.8%. BHP Billiton, was up 3.3%, recouping some of yesterday’s 4.4% drop. Rio Tinto chipped in with a 3.1% jump.
James Hardie and Boral put on 1.2% and 3.2%, while explosives makers Orica and Incitec Pivot added 0.3% and 2.2%.
Rivals Bluescope and Onesteel climbed 4% and 1.1%.
Oz Minerals jumped 2.2%, while Fortescue spiked another 8.7%.
Alumina rose 5.3% as the price of aluminium continued its rise on the London Metal Exchange overnight. Gold miners Newcrest and Lihir were up 1.5% and 1.7% respectively.
Junior miner Kagara was in a trading halt after announcing a $262 million capital raising.
Energy stocks were also heavily bought, with the sector climbing 2.6%. Oil Search was the highlight, climbing 4.3%, while Santos and Origin put on 3% and 2.9% respectively.
Woodside booked a 1.9% rise, while WorleyParsons was more than 5% above the line.
Felix Resources spiked 3.8%, while Energy Resources Australia weighed the sector, shedding 4.2%.
The big four banks were in lock step, rising between 1.2% and 1.5%.
The broader Banks and Financials sector jumped 1.4%, with investment bank Macquarie Group up 2.2%.
The insurers were above the line, with AMP setting the high water mark, rising 2.1%. AXA Asia Pacific rose 1%, while Suncorp-Metway climbed 1.6%.
Property Trusts were up 0.8% despite sector heavyweight Westfield barely moving. Dexus and GPT Group were 2.9% and 3.2% dearer respectively.
Stockland eked out a 0.3% gain, while Mirvac slumped 4.2%.
Industrials rose 1.3% overall.
Toll and Leightons climbed 3.1% and 0.8% respectively, while Brambles eased 0.5% lower.
Toll-road operator Transurban climbed 2.2%, while Macquarie satellites Macquarie Infrastructure Group and Macquarie Airports put on 3.9% and 1.2% respectively.
Asciano Group spiked 5.4% after receiving more offers for some of its assets.
Qantas and Air New Zealand were both unchanged.
Consumer Staples rose 0.8%, with modest gains across the sector. Heavyweights Wesfarmers and Woolworths rose 0.6% and 1.1% respectively.
Second-tier supermarket operator Metcash rose 1.2%.
Consumer Discretionary spiked 1.7% with retailers benefiting from the positive consumer confidence result.
David Jones, Harvey Norman and Billabong climbed 4.1%, 1.7% and 2.4% respectively. JB Hi-Fi spiked 6.8% following yesterday’s upgrade to its profit guidance.
Crown and Aristocrat rose 1.4% and 0.4% respectively, while in media stocks Newscorp was 1.8% above the line. Fairfax was flat.
A 1.5% rise in the price of Telstra helped the broader Telecommunications sector to a 1.7% gain.
The Information Technology and Utility sectors shed 1.7% and 0.2% respectively.
CSL rose 1.5%, leading the broader Healthcare sector 1.1% higher.
Ansell rose 3.7%.
Around the region, the Nikkei 225 was up 88.5 to 9,875.3, the Straits Times Index added 14.8 to 2,364.7 and the NZSE50 edged 7.7 higher to 2,830.1.
Spot gold was trading at US$957.85 per ounce and the Aussie was buying US$0.8037.
Consumer sentiment rises 12.7%
The Westpac–Melbourne Institute Index of Consumer Sentiment rose 12.7% to 100.1 in June from 88.8 in May. This was second largest amount since the survey began in 1974 and the largest increase in 22 years.
Keybridge brings forward preliminary review
Keybridge Capital shares slumped 14% after the company’s brought forward a preliminary review of the year-end carrying value of its investments portfolio. The company said based on current information, impairment provisions of around $120m would be required.
At lunch,
Keybridge shares were down 2c to
7.3c.
Kagara to raise $262 million
Kagara said it would undertake an equity raising of up to $262m. The junior miner also said it would join the list of Aussie mining companies with significant Chinese stakeholders.
Kagara shares were halted at
$1.185.
Downer reaffirms guidance
Downer EDI said at today’s investor presentation that it had $13.5 billion of work in hand. The construction, telecommunications, mining engineering company also said that guidance remained unchanged for the year to 30 June 2009.
At midday, Downer shares were up 13c to $4.83.
