Aussie market positive at open, driven by offshore risk sentiment

January 22, 2016 10:57 am 

SYDNEY, Jan. 22 — The Australian market has opened in positive territory on Friday driven by gains in offshore equities after the European Central Bank boosted prospects of further stimulus measures.

At Friday's open, the benchmark S&P/ASX200 index was up 37.3 points, or 0.77 percent, at 4,901.3, while the broader All Ordinaries index was up 36.4 points, or 0.74 percent, at 4,954.0.

Aussie miners led the surge at the open while battered energy stocks picked up after solid gains on a resurgent oil price after European Central Bank president Mario Draghi boosted prospects of further stimulus, turning risk sentiment.

"The change in sentiment was most evident in oil, which rallied over 5 percent despite another massive blowout in US oil inventories overnight," IG market analyst Angus Nicholson said.

Nicholson said local trade is likely to be driven by the worst performers of recent days, namely energy, financials and resources stocks, though cautioned the positive sentiment is not likely to continue.

"When you look at the selloffs of late, it's often been very, very high volumes in the selloffs, and volumes in the rebound have been low, which is usually a pretty bearish signal," Nicholson said.

"What you want is the converse, much lower volumes in the selloffs and higher volumes in the rallies, and we still haven't been seeing that."

At 1045, Australia's financials are hindering the index from further gains as resources and energy stocks continue the recovery rally.

ANZ is up 0.26 percent, however, the Commonwealth Bank of Australia is down 0.91 percent, the National Australia Bank has lost 0.56 percent and Westpac is 0.47 percent weaker.

BHP Billiton surged 6.80 percent, rival Rio Tinto is up 2.42 percent however gold miner Newcrest is down 1.52 percent.

Oil Search has gained 4.75 percent, Santos has rallied 7.03 percent despite announcing a 24 percent sales fall on falling oil prices and Woodside Petroleum edged 0.16 percent higher.

Wesfarmers has added 0.53 percent while Woolworths was flat.

Qantas lifted 1.02 percent while Telstra edged 0.18 percent higher. (PNA/Xinhua)

JBP/CDN

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