The ASX was up 40.4pts, or 0.70 per cent, at 5715.1pts on Wednesday. The Federal Budget was released on Tuesday night and revealed tax breaks and funding that many analysts predict will generally benefit business conditions in Australia. The rise on the ASX was led by the Industrials and Financials sectors, rising 1 and 0.82 per cent respectively. The Energy sector also posted gains of 0.75 per cent. Australian shares were initially volatile in the opening hour of trading, with the ASX jumping in the opening minutes before retreating into negative territory later in the hour. In the following hour Australian shares jumped moderately and continued a mostly upward trend. The Australian dollar ran into resistance at the $0.80 mark and fell to $0.7965 on poor Chinese economic data.
In US and Europe, volatility struck the bond markets, causing a spill over in the equities markets. In the US, the Dow Jones was down 0.20 per cent and the S&P 500 was down 0.29 per cent. In Europe, the DAX was down 1.72 per cent and the FTSE 100 was down 1.37 per cent. The Asian markets are mixed on Wednesday. The Nikkei 225 has advanced 0.71 per cent near the end of trading hours. The Hang Seng has fallen 0.20 per cent while the Shanghai Composite has fallen 0.18 per cent so far on Wednesday.
Myer Holdings Limited (ASX:MYR) was up 14.5c, or 10.28 per cent, at $1.56 per share. The retail giant released a report revealing a 2.4 per cent increase in sales in the March quarter on Wednesday.
Westpac Banking Corporation (ASX:WBC) was down 76c, or 2.23 per cent, at $33.30 per share. Australian financial companies had strong gains on Wednesday, with the exception of Westpac, which fell over 2 per cent.
Commonwealth Bank of Australia (ASX:CBA) was up $1.10, or 1.33 per cent, at $83.98 per share. After following a downward trend starting late last month, CBA made a partial turnaround on Wednesday.
National Australia Bank (ASX:NAB) was up $1.11, or 3.21 per cent, at $35.65 per share.
Author: Simon Herrmann
May 13, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.