Banks and industrial stocks rallied as the Australian market ignored the Greek debt crisis and weak signals from Wall Street.
Here’s the scoreboard:
- S&P ASX 200: 5,515.70 +56.69 +1.04%
- All Ordinaries: 5,506.00 +54.80 +1.01%
- AUD/USD: 0.7711 +0.0007 +0.09%
On Wall St, the S&P 500 closed up 0.3%. On the local market, nine out of ten sectors were stronger, adding another 1.04% to Tuesday’s 0.7% gain.
Bank and energy stocks lifted the market. The Commonwealth Bank was up 1.05% to $86.02 and Woodside Petroleum 1.26% to $34.66.
But the big miners fell hard as iron ore prices dropped below $US60. BHP was down 1.48% to $26.65, Rio Tinto 1.38% to $53.01, Fortescue Metals 4.19% to $1.830 and Arrium 3.7% to $0.13.
A range of industrial stocks did well, including Sydney Airport was up 6.3% to $5.29 and Transurban 4.5% to $9.72.
The top stories on Wednesday:
1. A $9 billion offer. Shares in freight logistics company Asciano jumped 20% after it confirmed media reports that it has received a confidential, non-binding and conditional proposal from Canadian company Brookfield Infrastructure Group. Asciano closed up 16.84% to $7.77.
2. The family business De Costi Seafoods has been sold to the big Atlantic salmon farm group Tassal for an upfront $50 million in cash and further payments depending on meeting targets. Tassal closed up 8.11% to $3.60.
3. Details of the Kathmandu offer. New Zealand retailer the Briscoe Group is offering cash and shares to the value of $NZ1.80 for each share in Kathmandu in a takeover deal worth about $A324 million. Kathmandu shares were down 2.55% to $1.53.
4. Why Australia’s property market looks like a bubble that is likely to keep growing from here. And the latest numbers show capital city house prices resuming the boom in June.
5. Activity in China’s steel industry is collapsing, and it’s bad news for Australia’s exports.
6. More bad news. Activity across Australia’s manufacturing sector contracted sharply in June with the Ai Group’s manufacturing PMI gauge sliding 8.1 points to 44.2.