Australian Share Market Gets Boost from Industrial Sector

The industrial sector, which was underperforming the past few weeks, boosted share market today, as the S&P/ASX200 index rose to 15.7 points and All Ordinaries index was at 14.7 points.

An analyst from Bell Direct said that the today’s market performance was “better than expected” as banks also led the market with gains. Westpac shares rose to 16 cents, while ANZ gained at 4 cents. The highest gain was Commonwealth Bank which was up by 21.5 cents.

The market is still recovering from the effects of the European situation, where debt woes are still happening. The analyst also said that this still remains a heavy factor and the local market will continue to be tested.

The announcement of Caltex Australia’s 330 job cuts and the closing of its Kurnell refinery didn’t seem to rattle investors, as the shares went up to 24 cents.

Newcrest Mining also performed well with an 86.5 cents climb, especially after the announcement that it has exceeded its targets for production for this year.

The Australian dollar was trading at $US1.0309, and was better than yesterday’s closing rates. Market analysts credit this to a renewed optimism of global markets overnight, particularly with the suggestion by the European Central Bank (ECB) to set up a European Stability Mechanism and provide funding for Euro governments.