Evening Market Analysis: Solid Day For Aussie


Evening Market Analysis: Solid Day For Aussie

Evening Market Analysis: Solid Day For Aussie

Aussies shares closed in positive territory today, following strong leads from European markets overnight.

During the session the deal which gives the debt-stricken Greek nation a second bailout worth 130 billion euros in aid was financially given the OK by eurozone finance ministers.

At home the RBA released their January minutes, which revealed that the reason for keeping rates on hold was the likelihood of disaster in the European had eased.

The minutes showed that while the financial situation in Europe remained fragile, the likelihood of an extremely bad outcome seems to have diminished somewhat over the previous couple of months.

The central bank also noted that Australia’s inflation outlook leaves room for another rate cut but it would only look at an easing policy if demand conditions were to wind back significantly.

Most sectors closed higher, with exception being A-REITS, which were dragged down by Westfield (-2.1%).

The big four provided a boost to the market with NAB the best of the bunch, climbing 1%.

Mining majors advanced amid stronger commodity prices; BHP gained 1.2%, while rival Rio Tinto strengthened 1.1%.

 

Oil Search added 2.6% after its full year 2011 earnings rose by 64% to 235.7 million, on year. The result was ahead of analyst expectations.

OneSteel saw its profit swing from $116 million in 1H FY11 to a loss of $74 million in the 1H FY12. Although the results missed analyst expectations, the company nevertheless surged 12.3% after its positive guidance.

The ASX 200 put on 35 points (+0.8%), to settle at 4291.

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