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Australian shares continue to rally

Announcement posted by de2 Communications 25 Jul 2016

25 July 2016: SYDNEY - The rally on the Australian sharemarket continued today, thanks in large part to a surge in Woolworths (WOW). 

Woolies had its best day in almost 20 years following news of a big write-off and operating overhaul, with the stock jumping 8.2 per cent,” said Chris Conway, Head of Research at Australian Stock Report.

In a statement released today, the supermarket giant Woolies said it will cut about 500 jobs and close 30 stores as part of its business restructuring program under the new CEO Brad Banducci. Woolies has been facing tough competition in the grocery sector with its rivals Coles and Aldi making aggressive moves to gain market share.

Conway added that the big four banks were all up by around 0.5% each, while CSL added 1.6% to breach the $120 mark for the first time. 

Mining and energy stocks were lower, as commodity prices came under pressure from a stronger greenback. 

BHP Billiton (BHP) was off 0.3 per cent and Rio Tinto (RIO) shed 0.4 per cent. Woodside (WPL)managed to climb 0.2 per cent, but Santos (STO) dropped 3.3 per cent, Origin (ORG) 0.8 per cent and Oil Search(OSH) 0.7 per cent. 

Gold miner Newcrest (NCM) was the biggest single drag on the ASX, as it fell 2.6 per cent.

On the day the ASX 200 put on 35 points (+0.6 per cent) to settle at 5534.

 

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For more information, visit: http://www.australianstockreport.com.au/