Australian stocks record biggest annual gain in 16 years
Australian stocks rose by 31 percent in 2009, their best yearly gain
since 1993, as the nation's commodity-driven economy steered clear of
the worst of the global financial crisis.
The benchmark S&P/ASX 200 index ended a shortened New Year's Eve
trading session up 37.28 points at 4,870.6, based on the latest data,
led higher by miners and banks in light trading.
That's the biggest annual gain since a 35 percent rise in the
then-benchmark All Ordinaries index 16 years ago.
"There's definitely been a sense and there has been for the last
several months that in Australia we weathered this so much better than
anyone else," said a market analyst at IG Markets in Melbourne Cameron
Peacock.
"All our banks have stabilized, the credit markets have stabilized, a
lot of companies have recapitalized their balance sheets, a lot of
over-leveraged players have fallen away and now the fit are ready to
move forward in 2010." New Zealand's benchmark NZX 50 index ended the
year up 18 percent at 3,230.14. It added 9.2 points, or 0.3 percent on
Thursday.
Australia's S&P/ASX 200 index has risen by 56 percent since March
when it hit a low of 3,120.8 on fears that the global credit crisis
could damage Australia's financial system.
Peacock said, however, that the market's almost 5 percent gain in the
past nine trading days has been on thin volumes, and it would be
difficult to tell how much conviction is behind the buying until
mid-to-late January when more investors return from the traditional
summer holiday period.
Thursday's gains were helped by a rising oil price and strong
performance from base and precious metals in recent days that has pushed
resources stocks higher.
BHP Billiton closed up 1 percent at A$43.12 and gold miner Newcrest
Mining ended up 1.1 percent at A$35.33.
Commonwealth Bank led the big four banks higher, adding 0.8 percent
to A$54.85.
The outlook for stocks in 2010 is dependant upon the results for US
company earnings in January and Australian earnings in February, said
Lucinda Chan, a division director at Macquarie Private Wealth in Sydney.
"We will probably open a bit slow (in 2010) but the feeling is still
very positive," said Chan.
Signs of confidence in the economic recovery in the U.S., the world's
largest economy and Australia's third-largest trading partner, augured
well for the Australian market, she added. SYDNEY, Reuters |