Demand for blue-chip leaders boosts market
Shares closed higher in Australia yesterday, propelled by News Corp, banks and resource counters after a strong performance on Wall Street on Tuesday.
The S&P/ASX 200 Index rose 47.6 points to end at 3,117.3, resuming a rally after a five-day break.
The All Ordinaries Index closed 43 points higher at 3,084.5, while the All Industrials Index climbed 67.5 points to 5,433 and the All Resources Index gained 27.4 points to 1,200.
Intersuisse equities manager Andrew Sekely said the strength in the market rested on blue chips such as News Corp and banking counters, as well as Brambles and Rio Tinto.
'These heavyweight stocks generally moved up quite strongly and that's where we've seen the real market support,' Mr Sekely said. 'In terms of the telecoms and the hi-tech stocks, really they haven't done a lot.' Mr Sekely attributed gains to the strength of New York's blue-chip benchmark, the Dow Jones Industrial Average, rather than the technology-heavy Nasdaq Composite Index.
He said investors were taking a cautious stance given that the Nasdaq was 'bouncing around so violently'.
'Built into it too is this flight of money from 'new economy' into the 'old economy',' he said. 'The events and the volatility overseas are definitely having an effect out here.' Close: 3,117.3 (+ 47.6) Turnover: A$1.28 bln Volume: 459.1 mln shares