A positive lead from Wall St on Friday helped the Aussie market snap a three-day losing streak, with the ASX 200 adding 72.7 pts or 1.1 per cent, to 6612.6. All sectors climbed higher for the ninth time this year. Energy and Financial companies did most of the heavy lifting rising by 2.6 per cent and 0.9 per cent, respectively.
In economic news, the Melbourne Institute monthly headline inflation gauge rose by 0.3 per cent in June – after rising 1.1 per cent in May – to be up 4.7 per cent over the year. The value of new home loans rose by 1.7 per cent in May. Loans for renovations (alterations & additions) rose by 11.6 per cent in May to record highs. ANZ job ads rose by 1.4 per cent in June to a 14-year high of 243,523 positions. Job ads are up 18.4 per cent on the year.
Tomorrow at 2:30pm AEST, the Reserve Bank (RBA) will hand down its interest rate decision. A Bloomberg poll shows that 25 out of 26 economists expect a 50 basis-point rate hike – the biggest back-to-back RBA interest rate hikes since records began in 1990. A 50 basis-point rate hike will take the cash rate to 1.35 per cent.
In company news, Link Administration (LNK) rejected Dye & Durham’s $4.30 per share acquisition proposal. This comes after Dye & Durham reduced its acquisition offer from $5.50 per share on June 27, due to the ‘current state of financial markets’ and a ‘potential undertaking’ with the Australian Competition & Consumer Commission. LNK finished 0.3 per cent lower today, and posted its sixth straight monthly loss in June.
Breville Group (BRG), an electrical kitchen appliance maker, has completed its acquisition of Italian-based prosumer coffee group, LELIT. BRG shares climbed 5.1 per cent – its largest gain in around 1½ weeks.
Top Australian Brokers
Bubs Australia (BUB) has entered into supply agreements with US retailers Meijer & HEB Grocery Company, in anticipation of the arrival of the fourth plane under Operation Fly Formula. The plane will ‘hold around 90,000 tins with a total gross revenue of circa $3 million’. BUB shares finished 3.2 per cent higher and are up 34.7 per cent so far this year.
We’ve created an infographic on some of the key events which impacted the Australian sharemarket over the past financial year. You have access the infographic here.
2.9bn shares were traded, worth $5.8bn. 915 stocks rose, 443 fell & 358 finished unchanged.
US markets will remain shut tonight for the Independence Day holiday. On Friday, US employment data is scheduled for release.
Originally published by Divik Nigam – (Author) CommSec