The share market has closed higher with almost all sectors in positive territory ahead of the US central bank’s interest rate decision.
The benchmark S&P ASX/200 index was up 0.71 per cent, at 5,584.6 points, with the mining and energy stocks the only sectors to finish modestly lower.
Market analyst Ben Le Brun from optionsXpress said commodity-based stocks were pulling back from recent strong gains, while the rest of the market followed Wall Street higher.
US shares hit record highs in overnight trade, helped by optimism over the impact of Donald Trump’s stimulus and infrastructure policies and anticipation of the US Federal Reserve rates decision after its two-day Federal Open Market Committee meeting.
“Outside of the materials it has been a good news story all day for us, even though this afternoon there has been some position squaring and profit taking ahead of the key FOMC meeting tonight,” Mr Le Brun said.
“We can safely say a 25 basis point rate hike is in the bag but the commentary and accompanying outlook from Fed chair Janet Yellen is going to be vital.
“It will dictate sentiment for financial markets across the globe from now and until Christmas.”
The FOMC is due to release its interest rate decision at 0600 AEDT on Thursday.
In local trading the major banks were all higher with the Commonwealth Bank up 80 cents at $81.18, ANZ gaining 11 cents to $29.89, National Australia Bank lifting 26 cents to $29.87 and Westpac advancing 43 cents to $32.35.
Retailers were among the best performers, with JB Hi-Fi up 66 cents, or 2.48 per cent, to $27.29, Harvey Norman climbing 10 cents, or 2.09 per cent, to $4.88, Wesfarmers adding 35 cents to $41.60 and Woolworths lifted 14 cents to $22.96.
Wagering giant Tatts Group jumped 8.45 per cent, or 35 cents, to $4.49 after a consortium lobbed a takeover offer to rival Tabcorp’s merger proposal. Tabcorp shares fell four cents to $4.61.
Shares in billboard companies APN Outdoor and oOh!Media soared after the companies unveiled a $1.6 billion merger deal.
APN Outdoor ascended 50 cents, or 9.26 per cent, to $5.90, while oOh!Media jumped 43 cents, or 9.89 per cent, to $4.78.
Among the mining and energy stocks, BHP Billiton dropped 32 cents, or 1.23 per cent, to $25.80, Rio Tinto fell 29 cents, or 0.47 per cent, to $60.96, while Santos declined 13 cents, or 2.86 per cent, to $4.41 and Oil Search was 15 cents, or 2.08 per cent, lower at $7.06. Bucking the trend was Woodside Petroleum which gained 23 cents, or 0.73 per cent, to $31.88.
Troubled baby formula maker Bellamy’s has been granted a suspension of its shares for a week as the company, which was already in a trading halt, continues work on a trading update.
KEY FACTS:
* The benchmark S&P/ASX 200 index closed up 39.6 points, or 0.71 per cent, at 5,584.6 points.
* The broader All Ordinaries index was up 39 points, or 0.7 per cent, at 5,639.7 points.
* The December share price index futures contract was up 37 points at 5,587 points, with 170,838 contracts traded.
* National turnover was 2.9 billion securities traded, worth $6.7 billion.
