Article / 05 November 2014 at 6:55 GMT

Australian Market Wrap: Consumer staples boosted by strong sales

Trading Desk / Saxo Capital Markets
Australia
  • The main benchmark index closed down 2 points to 5517.9 on a flat day
  • Woolworths rose 2.49% to finish at 34.13, ensuring consumer staples was the best-performing sector
  • AUDUSD is now looking bearish after the resistance level was tested twice

By Saxo Capital Markets Australia

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It was a relatively flat day today with our main benchmark index closing down two points to 5517.9. The bounce back in Woolworths ensured the consumer staples sector was the best-performing sector today, rising 0.85%.

Our financials was the second-best performing sector with Commonwealth Bank of Australia rallying 79 cents or 0.98% to 81.56 as it released a positive trading update. ANZ Bank also put in a fairly impressive performance adding 14 cents or 0.42% to close 33.79, followed by Westpac who added just over a quarter of a percent to 34.59. National Australia Bank put in a disappointing performance today, shedding 19 cents to 34.42.

The negative moves in oil overnight led our energy sector to be the worst-performing sector. Santos tanked 2.19% to 12.51, Oil Search lost 2.07% & Woodside Petroleum lost just under 1% to close at 40.04.

Our materials were weak as we saw the price of iron ore drop overnight by 0.8% to USD 78.01. Rio Tinto lost 0.31% to close 60.16, BHP Billiton gave up 19 cents or 0.56% to 33.82 and Fortescue Metals lost 2.07% to close 3.31.

Todays winners all gained out of market sentiment with no direct news released on our top five. Woolworths (WOW) put the breaks on its recent downward fall, rising 2.49% for the day finishing at 34.13.
Also in the consumer category, JB Hi-Fi (JBH) and Harvey Norman (HVN) continued to benefit from yesterday's surprisingly strong October sales. JBH climbed 1.95% to 15.71 and HVN rose 1.87% to 3.81.

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Consumer staples was the best-performing sector, led by Woolworths. Photo: Thinkstock

For the same reason Qantas (QAN) rose 2.08% to 1.715, while Beach Petroleum (BPT) and Worley Parsons (WOR) fell with great velocity. Both the latter were down 5.55% and 5.15% respectively to 1.105 and 12.70. Oil’s 3% fall last night drove the price through a standard day's range.

The AUD touched the downtrend line at the resistance level of 0.8760 and then quickly pulled back down. The AUDUSD is now looking bearish because this resistance level has been tested twice and couldn’t be broken through. The next support level still remains at 0.8646 which is a significant level that looks to be tested again. 

The SPI made an intraday high of 5510 right at the start of the open and then sold off by breaking the key support level at 5484. But on the back of the news that Republicans won the Senate control, the SPI rallied back up and closed at the same price as the opening price of 5504 along with the E-minis. 

This positive sentiment seems to be back from the US election outcome but if crude oil price continues to make the new fresh low and fall down, this rally could be reversed. The resistance level is at 5517 and the support remains at 5485.

– Edited by Gayle Bryant

Australian Market Wrap is compiled by the Sydney trading desk at Saxo Capital Markets. Join the conversation below to be a part of the social trading phenomena. 

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