Australian Stock Market Report – 11th May 2016 Wednesday

This is the Australian stock market closing report for Wednesday, 11th May 2016

In overnight sessions the US markets were broadly higher with the Dow Jones closing up 1.3% and Crude Oil closing higher by 2.9% due to supply disruptions in Canada and Nigeria.

This resulted in strong follow through to the ASX cyclical related sectors, with the majority of sectors demonstrating relative strength to the benchmark index.

The ASX 200 closed to the upside by 30 points or 0.55% to 5372

The daily trading range was 83 points with the high of the session at 5425 and the low of the session at 5342

Market breadth indicated broad-based buying with 141 advancing stocks versus 48 declining stocks and 11 stocks unchanged

The All Ordinaries Gold Index jumped 4% with Northern Star Resources higher by 7.9%, Silver Lake Resources up by 6% and Saint Barbara higher by 5.9%

The Metals and Mining sector was higher by 3.4% with Pilbara Minerals up 16%, Evolution Mining higher by 4.9% and Resolute Mining up 4.8%

The Materials sector extended the commodity related gains closing higher by 2.65%
CSR was higher by 5.5%, Iluka Resources up 4.1% and Regis Resources higher by 4.3%

BHP Billiton closed higher by 4.1% or 73 cents to .56 and Rio Tinto closed up 1.3% or 61 cents to .01

The banking bellwethers were mixed with ANZ closing down 26 cents to .43, the Commonwealth Bank closing higher by five cents to .05, National Australia Bank closing down three cents to .89 and Westpac closing up 11 cents to .41

According to the Westpac/Melbourne Institute index of Consumer Sentiment, confidence jumped 8.5% in May, rebounding from a 4% fall in April

Westpac chef economist Bill Evans said in a statement quote “our analysis indicates that the dominant driver of the boost to confidence has been the rate cut”

Westpac also said quote ” consumers were 13.2% more confident about conditions over the next 12 months and 14 8% more optimistic about conditions over the next five years”

The index came in at 103.2 points with year-over-year consumer sentiment higher by 0.8%

The Australian Bureau of Statistics is reporting that the value of total housing finance was down 0.2% in the month of March with the number of home loans approved falling 0.9% which a was better outcome than market expectations of a 1.5% fall

Loans approved for investment housing based on their value, were higher by 1.5% and loans approved for owner occupied housing based on the value fell 1.2%

The five most active stocks were Fortescue Metals up 2.1%, Fairfax Media higher by 4.9%, Telstra Corporation higher by 0.5%, South 32 up 3.85% and Scentre down 1.9%

The five best performers were Bellamy’s Australia higher by 8%, Northern Star Resources home by 7.9% Saint Barbara higher by 5.9% CSR up 5.5% and Woolworths up by 5.5%

The five worst performers were Flight Centre down 3.1%, Mesoblast lower by 3%, Oz Forex down 2.6% Metcash down 2.5%, Austal off 2.3%,

The Australian dollar is currently flat in the Asian session trading at 73.60 US cents

Spot Gold is up to 0.8% or to 75 USD

And Crude Oil slightly softer in the Asian session trading lower by $.13 or 0.3% to .53

This is been the Australian stock market closing report for Wednesday, 11th May 2016, and I’ve been your host Aaron Furst, I’ll see you again next time