Register  
Market Wrap
Tuesday, 27 March 2012 11:50am
By AAP  |  In Economics

The Australian share market has followed offshore markets higher in opening trade, with investors encouraged by signs from US Federal Reserve chairman Ben Bernanke that the US would keep interest rates low.

At 1013 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 37 points, or 0.87 per cent, at 4,299.8, while the broader All Ordinaries index was up 35.9 points, or 0.82 per cent, at 4,391.1.

On the ASX 24, the June share price index futures contract was up 40 points at 4,312, with 8,945 contracts traded.

The local market was buoyed by strong leads in offshore markets, with Wall Street's major indices rallying after Dr Bernanke signalled the US central bank is not willing to exit its easy monetary policy until its scheduled end date in late 2014.

In a speech on labour market issues, he said: "Further significant improvements in the unemployment rate will likely require a more-rapid expansion of production and demand...a process that can be supported by continued accommodative policies."

The Dow Jones Industrial Average gained 160.9 points, or 1.23 per cent, to 13,242 points, while the broader Standard & Poor's jumped 19.4 points, or 1.39 per cent, to 1,416.5.

The tech-laden Nasdaq Composite advanced 54.65 points, or 1.78 per cent, to 3,122.6 points.

Dr Bernanke's speech linked support for risk assets overnight, Benny Sada, senior equities analyst with Australian Stock Report said.

"We saw a big rally in stocks and commodities and not surprisingly our materials sector is leading today's rally."

Commodities rallied overnight, with gold jumping 2.36 per cent, copper adding 1.85 per cent, and zinc up 0.75 per cent.

Oil also made gains, with US light crude oil advancing 0.54 per cent to $US107.15.

Materials stocks benefitted in opening trade, with market heavyweight BHP Billiton firming 38 cents, or 1.11 per cent, to $34.57 and Rio Tinto up 38 cents, or 0.6 per cent, to $64.13.

Oil stocks were led higher by Santos which gained 17 cents, or 1.19 per cent, to $14.40.

Australia's largest gold miner, Newcrest Mining, surged 68 cents, or 2.36 per cent, to $29.51, while copper and gold miner, PanAust Ltd, jumped 11 cents, or 3.67 per cent, to $3.11.

The spot price of gold in Sydney was trading at $US1,689.10 per fine ounce by 1028 AEDT, up $US24.90 from Monday's closing price of $US1,664.20.

Banks and financials made solid gains, with ANZ Banking Group leading the big four lenders higher after it gained 34 cents, or 1.49 per cent, to $23.15.

In news on Tuesday, agricultural chemicals supplier Nufarm posted a net profit of $18 million in the six months to January 31, up from $4.4 million a year earlier.

But the result did not meet market expectations, Mr Sada said.

Nufarm's stock sank 34 cents, or 6.67 per cent, to $4.76.

Market turnover reached 490.6 million securities, worth $679 million, with 463 stocks trading up, 196 down and 300 steady.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

A new regulator? Better empower ASIC
The Australian financial services industry and Australia's financial advisers already have regulator dedicated to policing standards ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

Thought leadership and the art of living dangerously
Superannuation is one of the Australian economy's major pillars and it is time its leaders stepped out from behind their abacuses and ... read more
News Search   
VideoBrought to you by
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
Introduction to Series #07
What are the key challenges advisers face when building retirement portfolios for clients? Watch Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management. Watch video
Zurich Investments Global Growth Share Fund
The pool of investable funds in the retail sector is ever growing, and as investors become more sophisticated the appetite for global equities is only going to increase. In this video, Noble says with ... Watch video
The New Neutral
At this year's PIMCO Secular Forum, the company's global executives set themselves the challenge of taking a three to five year view and anticipate where the market would be against what investors would ... Watch video
Managed Accounts Forum 2014 Highlights
Around 150 delegates attended Financial Standard's inaugural Best Practice Forum in Managed Accounts held in Sydney in August. Financial Standard also launched a new magazine: FS Managed ... Watch video
Colonial First State Multi-Asset Real Return Fund
Find out more about the investment philosophy and objective of the Colonial First State Multi-Asset Real Return Fund. Senior Portfolio Manager, Kej Somaia explains. Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
OCT
25
OCT
28
Unlock the value of diversification with mFund
30
Unlock the value of diversification with mFund
NOV
05
ALTERNATIVE INVESTMENTS 2014 CONFERENCE
12
Global CIOS Symposium
13
2014 Financial Standard Social Media Influence, Leadership + Excellence Scholarship Program (SMILEYS)
News
Bites

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something SbtJzhI9