Afternoon (PM) Market Report

Details

Published on Monday, 05 September 2016 07:00

The Australian market had a strong rebound this morning, as disappointing U.S. nonfarm payrolls alleviated investor concerns over an interest rate hike this month.

Monday, 5th September 2016

Local stocks traded consistently at their intraday highs, buoyed by solid gains in the big four banks and strength in mining stocks. There were mixed results from the sectors; materials gained most significantly while health care lagged behind the rest. The Australian dollar appreciated against most major currencies.

The All Ordinaries rose 53.80 points (0.98%) to 5,524.40 while the S&P/ASX 200 gained 56.80 points (1.06%) to 5,429.60.

Brickworks provided building products and property earnings update. The purpose of this announcement is to clarify the following as outlined in the Company's ASX announcement on 30 August 2016. The Company re-affirms the trading update released on 9 June 2016, with Building Products underlying EBIT for FY2016 to be significantly higher than the prior year and Land and Development underlying EBIT also set to increase. Statutory Net Profit After Tax will be subject to final equity accounted results from Washington H. Soul Pattinson, and total significant items. Total significant Items are expected to be in the range $62-66m after tax, including those items outlined in the Company's ASX announcement on 30 August 2016. BKW added 11 cents (0.80%) to $13.88. Woodside Petroleum advised that it has entered into binding Sale and Purchase Agreements to acquire half of BHP Billiton's Scarborough area assets in the Carnarvon Basin, located offshore WA. The acquisition includes a 25% interest in WA-1-R and a 50% interest in WA-62-R, which together contain the Scarborough gas field. The Company will also acquire a 50% interest in WA-61-R and WA-63-R which contain the Jupiter and Thebe gas fields. The Company will operate WA-61-R, WA-62-R and WA-63-R. ExxonMobil is the operator of WA-1-R. The Company will pay BHP Billiton US$250m on completion of the transaction and a contingent payment of US$150m upon a positive final investment decision to develop the Scarborough field. The effective date of the transaction is 1 July 2016. WPL lifted 43 cents (1.53%) to $28.51.

The NZX climbed 65.92 points (0.89%) to 7,492.03 while the Nikkei gained 111.95 points (0.66%) to close at 17,037.63.

The Australian dollar was last quoted at 75.98 US cents.