Local market buoyed by strong global trading

Today's rise on the share market helped it to its biggest weekly gain in six weeks.

The All Ordinaries ended 0.6 per cent higher at 4,518 and the ASX 200 added 28 points to 4,507, which is off session highs.

The market was buoyed from the outset by a strong end to trade on global markets overnight.

That was due to an upward revision to third-quarter economic growth in the United States.

On the local market, resource, energy and bank stocks led the gains.

Global miner Rio Tinto jumped 2.8 per cent, while rival BHP Billiton added 0.5 per cent.

The banks were strong, headed by Westpac, which saw a 1 per cent rise.

Retailers were under pressure today after the third pillar in groceries, Metcash, downgraded its earnings guidance and suffered a fall in half-year profit.

Metcash made $82 million in the six months to the end of October, down 13 per cent on the same period last year.

It has blamed the downgrade on the closure of more Franklins stores than expected, price deflation in its grocery business, and stiff competition with behemoths Coles and Woolies.

Shares lost 2.25 per cent.

Rivals Woolworths and Wesfarmers were trimmed back by around a third of a per cent.

It was quiet on the economics front today, but the Federal Government's review of the GST was put out this afternoon.

It was critical of the tax system, called for the scrapping of inefficient state taxes and recommended a rewrite of the mining tax.

The review also said a more cooperative deal could be struck between the states and the Federal Government.

Tax bodies could not agree more, but they are not hopeful of change with both major political parties ruling out changes to the GST.

At 5:30pm (AEDT) the Australian dollar was buying 104.25 US cents, 80.2 Euro cents, 65 British pence and 85.9 Japanese yen.

West Texas crude was worth $US88 a barrel and Tapis was flat at $US115.50, while spot gold was back up to $US1,730 an ounce.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9280-0.0007-0.08%
    AUDUSD=X
    0.5526-0.0009-0.16%
    AUDGBP=X
    0.6712-0.0009-0.13%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg