Positive news from the world’s largest economy is boosting the local share market, despite falling iron ore prices and the impact of Telstra paying out its latest dividend.
Wall Street’s S&P 500 index closed above 2,000 points for the first time overnight due to more encouraging data on the US economy, with consumer confidence and durable goods orders showing steady improvement.
European markets also firmed ahead of the next announcement on economic stimulus by the EU’s central bank.
Local investors had been encouraged by the overseas gains, Lonsec senior client adviser Michael Heffernan said.
” Those are always a bit of a pipe opener for our market,” he said.
“We’re up only fractionally … but that needs to be balanced against the fact that a lot of big stocks are going ex-dividend now.
“So when you take account of that we’re up a little bit.”
Stocks that go ex-dividend – meaning new buyers are not entitled to the latest dividend – typically fall in value.
Telstra, the biggest company to go ex-dividend on Wednesday, was down 19 cents, or 3.3 per cent, at $5.55.
The resources sector was recovering from losses earlier the week sparked by the latest fall in iron ore prices, with BHP up 14.5 cents at $37.365, Rio Tinto up 28 cents at $64.39 and Fortescue Metals was 3.5 cents higher at $4.315.
The big four banks were also higher, with Commonwealth Bank up 24.5 cents at $80.985, Westpac up 20.5 cents at $35.115, ANZ up 19.5 cents at $33.495 and NAB was 24.5 cents higher at $34.805.
Among the many companies to release earnings reports, building products maker Boral was the best performer, adding 23.5 cents, or 4.4 per cent, to $5.625 after returning to profitability.
Flight Centre disappointed the market with a 16 per cent profit fall, with its shares down $1.36, or 2.9 per cent, at $46.07.
Developer Lend Lease had gained 23 cents, or 1.7 per cent, to $13.98 after increasing its full year profit by nearly 50 per cent.
KEY FACTS
* At 1200 AEST on Wednesday, the benchmark S&P/ASX200 index was up 6.5 points, or 0.12 per cent, at 5,644.1 points.
* The broader All Ordinaries index was up 7.6 points, or 0.13 per cent, at 5,642.1 points.
* The September share price index futures contract was up 22 points at 5,618 points, with 9,559 contracts traded.
* National turnover was 1.1 billion securities worth $2.3 billion.
