ASX Market Wrap – 24th July 2013

24Jul13

ASX200 rallied the whole morning yesterday but a few data points, eased back, ending up 0.4% at 5035 while the Small Ords was up 0.2%.

Across the sectors, Metals & Mining rose 1.2% while Materials and Telecoms both rose 1.1%. Property and rose 0.8% while Financials and Utilities both rose 0.5%, with Cons Staples the only other positive sector up 0.2%. In the red, Healthcare was lower by -1.2% while Cons Disc and Energy were down -0.8% and -0.6% respectively. IT and Industrials were only marginally lower at -0.5% and -0.4% respectively.

Overall, market volume was ok with 1.4b shares changing hands to a good value of $4.2b, while in ASX200 depth 99 stocks were up, 91 down and 11 were flat.

Market Movers and Drivers
The local market had some weak leads from US and Europe but suffered most after data releases:

ABS released quarterly CPI at 0.4% versus expectation of 0.5%, putting the annual rate at 2.4% — probably enough to suggest another rate cut.

Additionally, Chinese Flash PMI data continued to fall (11 month in a row), printing 47.7 (last 48.2) and giving more weight to a Chinese slowdown that would hit Australian business – again, more evidence to suggest a rate cut.

Additionally, the Government’s internet vacancy index fell 23.85 yoy, showing how few jobs are in the economy – strike three for the rate cut.

Significant Market Moves

All the major banks closed higher closed higher, with ANZ rising 0.2% to $28.98, CBA 0.7% up at $72.90, WBC gaining 0.9% to finish at $29.75 and NAB up 0.6% higher at $30.67.

The big miners BHP and RIO outperformed the index, gaining 0.7% and 1.6% to close at $34.73 and $57.68 respectively, while ORG fell back -1.5% after a few good days while WPL rose 0.4%.

TLS had a good day up 1.0% while WES was up 0.5% and WDC rose 0.2%. On the other side, CSL fell -1.5% and BXB and SHL fell -1.4% and -1.1% respectively while QBE was also lower by -0.9%

Overall, in the ASX 100, biggest gain came from Atlas Iron was up 9% on better production numbers and raised 2014 guidance, while UGL fell -3.8%.

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