The Bull

Sunday 17

December, 201711:02 PM



Share market strikes back after early dip

Share market strikes back after early dip

The share market has hit its highest level in more than three months despite significant falls by the big miners.

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By AAP 12.10.2017 05:10 PM

The share market has overcome early falls to close higher, as Bank of Queensland's profit growth boosted the financial sector and energy producers were boosted by forecasts of stronger oil demand.

The benchmark S&P/ASX200 index rose 0.39 per cent to 5,794.5 points, its highest level since June 29.

With BoQ delivering a rise in full year earnings and a surprise special dividend, Citi director of equity sales Karen Jorritsma said the result bodes well for other major lenders set to release their financial results in the coming weeks.

"With bad and doubtful debts coming in ... well below expectations, the wider credit environment is very benign which is a huge positive for banks," Ms Jorritsma said.

BoQ shares gained 16 cents, or 1.2 per cent, to $13.13, and the the big four banks all rose, led by a gain of 0.9 per cent for National Australia Bank, which added 29 cents to $32.06.

With the price of iron ore tumbling below US$58, the major miners were all punished.

BHP Billiton dropped 1.6 per cent, Rio Tinto lost 1.4 per cent, Fortescue Metals shed 1.8 per cent, while the gold miner Newcrest Mining also fell, losing 1.3 per cent.

Shares in the major energy companies were stronger as oil investors responded positively to an earlier OPEC forecast of higher demand next year.

Santos was the strongest in the sector, up two per cent at $4.15 and Oil search the weakest, gaining 0.3 per cent to $7.13.

Shares in Bellamy's Australia added 4.6 per cent to $10.23 following an upgrade of its full year guidance for its China-facing infant formula business, taking the company's gains past 30 per cent for the week.

A steadying Australian dollar briefly stumbled at around 1130 AEDT, on the release of better than expected August housing finance figures, but it recovered in afternoon trade to move well above 78 US cents.

ON THE ASX:

* The benchmark S&P/ASX200 gained 22.4 points, or 0.39 per cent, to 5,794.5 points

* The broader All Ordinaries index added 23.3 points, or 0.4 per cent, to 5,864.1 points.

* The SPI200 futures contract was up 23 points, or 0.4 per cent, at 5,768 points.

* National turnover was 3 billion securities traded worth $5.1 billion.

CURRENCY SNAPSHOT AT 1700 AEDT:

One Australian dollar buys:

* 78.21 US cents, from 77.85 US cents on Wednesday

* 87.81 Japanese yen, from 87.49 yen

* 65.84 euro cents, from 65.88 euro cents

* 58.98 British pence, from 59.01 pence

* 109.93 NZ cents, from 109.97 NZ cents

GOLD:

The spot price of gold in Sydney at 1700 AEDT was $US1296.18 per fine ounce, up from $US1,288.33 per fine ounce on Wednesday.

BOND SNAPSHOT AT 1630 AEDT:

* CGS 4.50 per cent April 2020, 2.0095pct, from 2.0127pct on Wednesday

* CGS 4.75pct April 2027, 2.7528pct, from 2.769pct

SYDNEY FUTURES EXCHANGE PRICES:

* December 2017 10-year bond futures contract was at 97.17 (implying a yield of 2.83pct) from 97.155 (2.845pct) on Wednesday

* December 2017 3-year bond futures contract was at 97.85 (2.15pct) from 97.84 (2.16pct).

(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)

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