This is the Australian stock market closing report for Thursday, 12 May 2016
In overnight sessions the weekly EIA petroleum status data showed a draw on crude oil inventories of negative 3.4 million barrels when a surplus of 0.71 million was forecast. This created an initial 5% spike higher in oil prices to six month highs, resulting in strong follow through to the ASX Energy sector in today's trading. A weaker greenback helped lift commodity related stocks which also saw Mining and Resource sectors higher in today's session.
The Dow Jones was off 1.2% overnight which dampened sentiment in non-commodity related cyclical sectors within the ASX, with the heavyweight Financials sector, demonstrating the most weakness in today's session.
The contrasting price action across all ASX sectors, saw the benchmark index close down by 13 points or 0.24% to 5359
The daily trading range was 35 points with the high of the session at 5372 in the low of the session of 5337
Market breadth for the benchmark index was negative with 75 advancing stocks versus 110 declining stocks and 15 stocks unchanged
For the second day in a row the lead sector was the All Ordinaries Gold index higher by 3.8%.
Gold Road Resources was higher by 7.55%, Tribune Resources was up 6.7% and Saint Barbara was higher by 5.2%
The Energy sector saw positive follow-through in today's session with Origin Energy closing higher by 5.5%, Santos closed to the upside by 5.4% and Whitehaven Coal was up 5%
The Materials sector closed up 0.7% with Incitec Pivot higher by 3.4%, Nufarm up 2.75% and Alumina higher by 1.5%
BHP Billiton and Rio Tinto were mixed with BHP closing to the upside by 0.2% to $18.59 and Rio Tinto closing lower by 0.2% to $45.90
The Consumer Discretionary sector closed up by 0.93% with the top three components, Aristocrat Leisure, Fairfax Media and Myers Holdings populating the ASX 200's five best performers list.
The noncyclical Utilities industry group demonstrated significant weakness relative to the ASX 200 closing lower by 1.65%
APA Group closed down 2.6%, Spark Infrastructure was lower 1.8% percent and AGL Energy closed to the downside by 1.5%
In economic news
The White House said, In a phone call late yesterday, Prime Minister Malcolm Turnbull and US president Barack Obama "discussed the need to work together to address the global glut in steel"
China and other major steel producers, at a meeting last month, were unable to agree on measures to curb the overcapacity crisis.
Chinese steel production hit a record high earlier this year, which saw Mr Turnbull raise the huge overcapacity issue with top Chinese officials.
Chinese officials have indicated that they are already taking steps to reduce capacity, however the Chinese State News said blaming China for the global steel industry crisis was a lazy excuse.
The five most active stocks were Fairfax Media, Fortescue Metals, AMP, South 32, and Telstra Corporation
The five best performers were Aristocrat Leisure up 10.5%, Fairfax Media higher by 8.7%, Credit Corp Group up 8.3%, Myer Holdings up by 6.7% and origin energy higher by 5.5%
The five worst performers were AMP down 5.3%, Cochlear down 4.8%, Mesoblast lower by 3.9%, GWA Group down 3.6% and Westpac lower by 3.6%
The Australian dollar is currently trading to the downside by 0.65% to 73.28 US cents
Spot Gold is marginally lower by 0.2% to $1273 USD
And Crude oil is slightly positive in the Asian session closing higher 22 cents or 0.48% to $46.45
This has been the Australian stock market closing report for Thursday, 12th May 2016 and I have been your host, Aaron Furst, I'll see you again next time.