SYDNEY: The Australian sharemarket pushed higher at the start of the week, buoyed by a largely upbeat day of corporate earnings, though analysts flagged the likelihood of rally selling.
At the official 4.15 (AEST) close, the benchmark S&P/ASX200 had gained 11.2 points, or 0.21 per cent, to 5367.7, while the broader All Ordinaries had improved 8.6 points, or 0.16 per cent, to 5368.6. With 26 per cent of the top 200 companies having reported full-year results, and 56 per cent of those beating consensus estimates, IG chief market strategist Chris Weston said earnings season had so far been “quite good, if we only take the level of beats and misses.”
“Outlook statements haven’t been terrible, but money managers would have liked to have seen more inspiring rhetoric, and we are more likely to have seen net downgrades of forward EPS [earnings per share] assumptions from analysts,” he said.
And Mr Weston said the market was still dominated by the bears, following last week’s 2.2 per cent drop in the benchmark.
“Last week’s break of the 2012 uptrend and the subsequent close below the July lows of 5383 are significant; they signal that trend and momentum should suggest selling rallies in the index,” he said.
“The bulls had a chance to push the market back through 5383 today, but failed. This is bearish.”
Financial stocks led the gains, up 0.45 per cent overall, with all the major banks improving aside from the Commonwealth Bank, which exited its trading halt this morning and moved immediately lower.
Commonwealth Bank shares finished 0.61 per cent lower at $81.27. But the share price slide paled in comparison to the 7.5 per cent dive in ANZ shares earlier in August after it announced a $3 billion raising.
ANZ shares gained 0.79 per cent today to $29.52, National Australia Bank added 1.57 per cent to $32.26 and Westpac improved 1.95 per cent to $31.94.
Despite the strong Newcrest earnings result, and a steady iron ore price, materials were slightly down to the tune of 0.09 per cent.
