The share market has rallied on the back of a positive federal budget, with retail stocks leading the way.
The market shrugged off slower wage growth and weak leads from Wall Street to focus on extra spending that will flow to retailers thanks to the Australian government’s small business package, Phillip Capital senior client adviser Michael Heffernan said.
He said tax cuts and spending incentives for small businesses, including a tax deduction for the full value of assets worth up to $20,000 would result in more money spent on electronics, cars, office equipment and hardware.
“It’s the budget that has been the real fuel infection for the market today,” he said.
“The small business funding is going to do a lot to boost economic confidence.”
Harvey Norman shares gained 22 cents, or five per cent, to $4.62, Dick Smith rose seven cents, or 3.27 per cent to $2.21, JB HiFi was up 43 cents, or 2.1 per cent, to $20.90 and Bunnings and Officeworks owner Wesfarmers added 65 cents, or 1.49 per cent, to $44.15.
Myer shares were up more than 10 per cent to $1.555 after the company announced a 2.4 per cent rise in third quarter sales.
Among the banks, ANZ added 70 cents to $33.11, National Australia Bank was up $1.11 at $35.65 and Commonwealth Bank was $1.10 cents stronger at $83.98.
Westpac was down 79 cents to $33.27, after going ex-dividend.
Disappointing Chinese industrial figures out at 1530 AEST has weighed on the major miners.
Rio Tinto was down 23 cents to $59.02 and Fortescue Metals shed six cents to $2.51.
BHP Billiton fell three cents to $32.50, partly cushioned by its string of cost cutting measures announced on Tuesday night.
The measures are expected to improve efficiency and cash returns amid weak commodity prices.
KEY FACTS
* At 1615 AEST on Wednesday, the benchmark S&P/ASX200 index was 40.4 points, or 0.71 per cent, higher at 5,715.1.
* The broader All Ordinaries index was up 37.7 points, or 0.66 per cent, at 5,710.8.
* The March share price index futures contract was 36 points higher at 5,707, with 28,315 contracts traded.
* National turnover was 2.1 billion securities worth $6.1 billion.
