Australian market higher by lunch
The Aussie market followed a positive lead from Wall Street as recent economic data and analyst comments buoyed investors. Heavyweight financials and consumer staples were the strongest performers, while the resource sector had lost ground made yesterday.
In economic news, a survey by the Australian Industry Group and Housing Industry Association revealed the building industry remained at a level of contraction for the second consecutive month. The index rose 1.7 points to 49.3 in December, below the 50 point level that separates growth from contraction.
At midday, the All Ords rose 25.5 to 4,956.0, while the ASX/200 gained 29.5 to 4,928.9. About 960 million shares worth around $1.3 billion had changed hands.
The Banks and Financials sector added the most points to the index to be 1% higher by lunch.
ANZ, Westpac and CBA were between 1.2% and 1.4% higher to be trading at $22.38, $25.39 and $56.22 respectively.
NAB was relatively flat at $27.05, while QBE led insurers higher having gained 33c, or 1.3% to $24.83.
Materials and Resources weakened, however not as dramatically as the drop in base metals prices overnight. Zinc, lead and nickel prices fell between 3% and 4.1% on the London Metals Exchange.
The sector was 0.2% lower.
BHP Billiton and Rio Tinto mirrored their share price movement in the UK overnight. BHP was down 7c to $43.70, while Rio had added 45c to $79.45 by noon.
Iron ore producer Fortescue shed 5c, or 1% to $5.12, while explosives and fertiliser company Incitec Pivot dropped 7c to $3.71.
Gold miners tracked the price of the precious metal lower, which was a result of a stronger greenback, as well as the exiting of positions and the booking of profits ahead of the release of US jobs data on Friday.
Newcrest and Lihir lost 1.3% and 0.9% to $36.66 and $3.38 respectively.
The Energy sector put on 0.6% despite the price of crude dipped below US$83 a barrel overnight.
Origin and Coal & Allied put on 1.8% and 1.5% to $17.86 and $83.30, while WorleyParsons rallied 73c, or 2.4% to $30.78.
Woodside was slightly lower at $48.86.
The major players led Consumer Staples 1.4% into the black. Wesfarmers gained 78c, or 2.5% to $31.48 and Woolworths rose 25c, or 0.9% to $28.10.
Coca-Cola Amatil jumped 2.3% to $11.37.
A strong morning for most of the retailers helped the Consumer Discretionary sector to a 0.3% gain. Positive data out of the US and locally has been the main contributor to recent strength among retail stocks both home and abroad.
Billabong climbed 65c, or 5.9% to $11.62, while JB Hi-Fi advanced 1.5% to $21.66. Harvey Norman bucked the trend, shedding 4c to $3.91.
Major gamers and media stocks were mainly below the line, including Fairfax which weakened 1.5c to $1.73.
Property Trusts put on 0.9% following broad based gain among the majors. Westfield added 14c to $12.78.
The majority of the heavyweight Industrial stocks were flat, leaving the sector on the line by lunch.
Qantas rose 3c to $2.93, while Boart Longyear rallied 2.6% to 39.5c.
Brambles dipped 4c to $6.98 as the company announced three appointments to its senior management team.
A 1.2% gain to $3.36 from Telstra saw the Telecommunications sector 1.5% higher.
Around the region, the Nikkei 225 advanced 109.7 to 10,791.4, while the Straits Times Index gained 11.4 to 2,924.6. Meanwhile, the NZSE50 added 21.9 to 3,306.7.
Spot gold was trading at US$1,126.20 per ounce, and the Aussie was buying US$0.9177.
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