Australian Stock Market Report – Afternoon 7/4/13

AFTERNOON REPORT
(4.40pm AEST)

The Australian share market continued its volatile run today, rebounding from yesterday's losses to end the session higher by more than one per cent.

Energy stocks led the way after the price of crude oil rose above US$100 a barrel for the first time in 14 months due to tensions in the Middle East and an oversupply of US stockpiles. This afternoon the crude oil price is buying US$101.24 a barrel and last night closed at its highest level since May 2012. The energy sector was higher by 2.7 per cent today. Shares in Woodside Petroleum (WPL) rose by almost 3 per cent today to $35.64.

Shares in Crown Limited (CWN) and Echo Entertainment Group (EGP) were both placed in a trading halt in afternoon trade, ahead of a decision by the NSW Government on a second casino licence in Sydney. Premier Barry O'Farrell has given the go-ahead for Crown's proposal to build a $1.5 billion dollar six star resort, including a VIP only casino in Sydney. CWN shares rose 2.2 per cent to $12.21 before being placed in the halt while EGP fell 4.3 per cent to $2.91. EGP is the operator of Sydney's The Star casino.

In economic data today, dwelling approvals fell by 1.1 per cent in May, after a 9.5 per cent list in April. Approvals are down 3.2 per cent over the year. House approvals rose by 2.8 per cent in May (private sector up 2.5 per cent) to the best levels in over two years. 'Lumpy' apartment approvals fell by 6.4 per cent after rising by 19.3 per cent in April. The current number of dwelling approvals (13,541) is above the decade average (13,362)

CommSec Economist Savanth Sebastian said of the data, "CommSec believes that while the Reserve Bank will continue to maintain an easing bias, although policymakers will be thinking long and hard about the benefits from another rate cut - particularly given the recent falls in the Australian dollar. The June quarter inflation data released on July 24 will be the next hurdle."

A total of 1.4 billion shares changed hands today, worth $3.1 billion. 603 were up, 272 were down and 288 were unchanged.

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