Stocks close 0.5pc stronger
The energy sector has led the local market to within reach of its five-week high.
The Australian market rebounded today as blue chips, with the noticeable exception of Telstra, pushed the index to within reach of its five-week high.
At 4.15pm (AEDT) official market close, the S&P/ASX 200 had lifted 0.5 per cent, or 30.1 points, above Wednesday’s finish, to 5482.3. That placed it less than 10 points from Monday’s high of 5492 – the highest level since August 30.
Meanwhile the broader All Ordinaries index was 0.5 per cent, or 27.8 points, stronger, at 5564.8.
Spring seems to have sprung on the local market, with five negative weeks in a row now leading into a good chance of three positive weeks.
With one session remaining, the ASX 200 is 0.9 per cent higher for the week so far.
October is – six sessions in – living up to its historical position as the best month of the year for Australian equities. October has seen an average rise of 4.6 per cent in October over the last five years.
Today, energy stocks led the way with a 2 per cent gain for the sector, following a healthy 2.3 per cent rise in the price of crude oil.
Standouts in the energy space were Santos, with a 3.6 per cent gain, and Origin Energy, which grew 3.1 per cent.
Major bank stocks held up well as this week’s parliamentary inquiry wrapped up with NAB and Westpac CEOs taking the hot seat.
CBA gained 0.8 per cent to $74.16, Westpac added 0.6 per cent to $30.39, ANZ lifted 0.7 per cent to $28.25 and NAB increased 0.3 per cent to $28.14.
Elsewhere Woolworths pitched in with a strong 2.6 per cent rise to end the day at $23.91.
Telstra weighed on gains with a 1.8 per cent fall to $5.06, as investors remain concerned about the future shape of the telecommunications sector as the NBN rolls out. High yield stocks, such as Telstra, also continue to be squeezed as bond yields recover.
Resources giants focused on the oil price as iron ore remains unchanged during China’s national week celebrations, with BHP Billiton lifting 1.2 per cent to $23.12, Rio Tinto adding 0.6 per cent to $52.21 and Woodside Petroleum gaining 1.9 per cent to $29.44.
The worst performing stock on the index today was Mantra Group, with a 5.1 per cent slide.
Gold miners weren’t far behind; they’re feeling the pain of a 3.7 per cent drop in the price of the yellow metal in three sessions.
Newcrest dipped 1.6 per cent to 20.94, OceanaGold gave up 2.2 per cent to 3.72 and Ramelius Resources backtracked 1.15 per cent to 43 cents.
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