Article / 22 April 2015 at 7:57 GMT

Australian Market Wrap: Telecoms shine a light

Trading Desk / Saxo Capital Markets
Australia
  • Telecoms up 0.8% – Telstra gains 0.97%
  • Energy weak, down 0.97% in today's session 
  • Big four banks all make losses on ASXSP200 

By Saxo Capital Markets Australia

Telecoms was the leading industry today, up 0.8%. This goes to show the weight Telstra has on the Australian market and this sector as it was up 0.97%, where SingTel, TPG, iiNet and M2 Group were all down.

On the other side of the coin, energy was the worst performing sector, down 0.97%. This should not be surprising given both WTI and Brent were down overnight. WTI fell 1.7% as US inventories rose by 5.5 million barrels last week, more than expected. 

The big four banks all followed suit with ANZ, Commonwealth Bank, National Australia Bank and Westpac Banking Corp falling 0.76%, 0.72%, 1.22% and 1.29% to $35.49, $91.12, $38.11 and $38.29 respectfully.

In a complete reversal of yesterday, Fortescue Metals bounced back 1.87% to $1.905 where BHP Billiton and Rio Tinto fell 1.08% and 0.54% to $30.27 and $55.20 respectfully.

A rare leader in market movers, Aurizon (AJZ), formerly Queensland Rail, today announced the outcome of the Fair Work Commission decision that had been weighting on the company. The decision approved the application to terminate expired enterprise agreements in Queensland. 

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 The Aussie dollar rose today after good CPI figures. Photo: iStock

It was recognised that AJZ was restricted in making business changes to operate in a competitive market place, and that many of the provisions were not common in a standard enterprise agreement that were removed. AJZ finished the day up 3.88% top $4.82. 

Dexus Property today fell 2.38% to $7.37 after the announcement of a private equity placement of AUD450mn. 

AUDUSD was trading just above 0.7700, but when better-than-expected quarterly CPI (0.2% vs 0.1) and yearly trimmed mean CPI (2.3% vs 2.2%) came out, the Aussie dollar popped up more than 50 pips as the market now seems to lowered the chances of the May rate cut. 

The resistance level remains at 0.7850 and the support is at 0.7737, although 0.7800 would be the first test should the AUDUSD continues to the current rally. There are no major economic data tonight, therefore the price actions could be quite subdued.

Today’s good CPI figures did not help already weakening ASXSP200 as the big four banks tumbled. The intra-day low came very close to the Monday’s previous swing low 5,806. Once again our market will have to rely on the overseas leads in order to gain some positive sentiments back.

— Edited by Oliver Morrison

Australian Market Wrap is compiled by the Sydney trading desk at Saxo Capital Markets

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