A man looks the board of the Australian Securities Exchange ASX in central Sydney August 7, 2013.
A man looks the board of the Australian Securities Exchange in central Sydney August 7, 2013. Reuters/Daniel Munoz
  • Buyers have made a big impression on local shares in early trade on Friday. In pre-lunch trade the ASX 200 had recovered all the ground the index had shed on the previous day when the market had fallen by almost 1.3%.The improved tone came on the heels of similar gains for US markets overnight. Traders were encouraged that the Federal Reserve suggested a slower trajectory of rate hikes over the next year. Economic data was stronger than expected. The Dow Jones rose by 180 points or 1.0% with the S&P 500 i ndex up by 1.0% while the Nasdaq ended at record highs, up by 68 points or 1.3%. European shares rose in their most recent session with mining shares leading the way, Investors were encouraged by Chinese and US economic data. The FTSEurofirst 300 rose by 0.2% with the German Dax up by 1.1% and the UK FTSE up by 0.4%.
  • Every ASX sector was trading higher at lunchtime led by the property sector. GPT Group (GPT) was ahead by 3.2%, while Goodman Group (GMG) was up by 2.8%. Technology stocks posted a solid gain as a group although the sector was at the tail of the field compared to the rest with a gain of 0.6%. Computershare (CPU) was up by 0.4%. Commodity related stocks were firmer after underlying prices generally firmed on the back of a weaker US dollar. World oil pr ices rose on Thursday, partly in response to signs of tighter supplies in the US. Comex gold futures price rose by US$25.20 an ounce or 2.1% to US$1,202.00 per ounce. Iron ore was unchanged at US$60.90 a tonne. Fortescue Metals Group (FMG) shares were ahea d by 2.6%.
  • Woolies (WOW) shares were unhindered by credit ratings agency Standard & Poor’s (S&P) lowering its outlook on the grocer to negative from stable and highlighting a possible downgrade of the long-term credit rating if it cannot restore sales and earnings growth to its core supermarket business. S&P also cited uncertainty created by the departure of the group’s chief executive Grant O’Brien and group retail services director Penny Winn, and lowered the group’s management and governance assessment to satisfactory from strong as a result. WOW shares were up almost 2% at lunch.
  • APN News & Media (APN) shares recovered from early losses to be up almost 1% after appointing a new chief executive. Current boss Michael Miller announced he would be leaving the company to take up the role of News Corp's (NWS) executive chairman for Australasia. APN, which has a footprint spanning newspaper and online publishing, broadcast radio and outdoor advertising, has appointed Ciaran Davis as its new CEO. Davis has been CEO of Australian Radio Network (ARN), a company wholly owned by APN, since 2010. He will continue to oversee the radio business while his successor is found.
Tom Piotrowski - Market Analyst (Author)
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