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Australian stocks up on coalition win, Asian data

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Published on: Monday, September 09, 2013

Australian shares finished half a per cent higher, buoyed by a decisive election result and positive news from China and Japan.

The nation’s biggest miners gained more than one per cent and financial stocks performed strongly.

CommSec market analyst Steve Daghlian said investors were pleased that the lower house result had produced more certainty.

“The federal election was one of those things for the market to get out of the way and quite a few sectors reacted positively,” Mr Daghlian said.

Additionally, Japanese stocks soared 2.48 per cent on Monday as investors cheered fresh data that showed its economy grew more than expected last quarter.

Figures released on Friday showed inflation in China slowed to 2.6 per cent year-on-year in August.

At the close of trade, mining giant BHP Billiton had gained 48 cents to $35.64 and Rio Tinto had added 86 cents to $61.95.

The fall-out continues for Newcrest Mining after its horror year, with boss Greg Robinson’s annual pay cut by 27 per cent to $2.73 million.

Newcrest shares rose 3.5 per cent to $13.24.

But iron ore miner Fortescue fell nine cents to $4.45.

The major banks were higher, with National Australia Bank adding 41 cents to $33.18, ANZ up 25 cents to $29.94, Commonwealth Bank rising 47 cents to $73.63 and Westpac gaining 29 cents to $31.93.

Airline stocks had fared well, with the coalition promising to repeal the carbon and mining taxes. Qantas shares were five cents higher at $1.37.

Perhaps surprisingly, finance group McMillan Shakespeare, which offers car leasing packages, lost 72 cents, or 5.4 per cent, to $12.68 even though the coalition has promised not to proceed with Labor’s proposed tightening of fringe benefit tax rules.

Making news, Cash Converters is seeking to raise $50 million to $60 million through an issue of corporate bonds to repay part of the group’s existing debt and to fund further investments.

Its shares were down half a cent, or 0.8 per cent, at $1.23.

Key facts:

  • At the close on Monday, the benchmark S&P/ASX200 index was 36.5 points, or 0.71 per cent, higher at 5,181.5.
  • The broader All Ordinaries index was up 35.4 points, or 0.69 per cent, at 5,179.4.
  • The September share price index futures contract was 39 points higher at 5,184, with 23,072 contracts traded.
  • National turnover was 1.2 billion securities worth $3.3 billion.

 


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