Higher commodity prices are helping resource stocks offset dips in banking shares.
Diversified miner BHP Billiton appears to be the main beneficiary, Lonsec senior client adviser Michael Heffernan says.
“The resources stocks are very related to commodity prices. Iron ore is holding its own, so that’s positive for BHP,” he said.
BHP added 28.5 cents to $38.195 while iron ore miner Fortescue Metals lifted 13.5 cents to $5.575.
But Rio Tinto lost 11 cents to $64.96.
Three of the big four banks were weaker, as the Australian dollar continues to stay below 94 US cents.
“That can have some impact on major blue chip shares like the banks. Foreigners say: `If the dollar’s going to go down a bit, might as well trim down some of our holdings in blue chip shares’,” Mr Heffernan said.
Westpac was down 35 cents at $32.77, ANZ had lost 7.5 cents to $32.065, NAB was 19 cents weaker at $34.37 but Commonwealth Bank was seven cents stronger at $78.42.
Telstra was three cents higher at $5.17.
Fertiliser and explosives maker Incitec Pivot added 18 cents, or 6.9 per cent, to $2.79 despite its full-year net profit falling by 27 per cent to $372 million.
“Certainly, the market’s clapping its hands with that report. It wasn’t a great report but better than expected,” Mr Heffernan said.
Meanwhile, News Corp shares were down 61 cents, or more than three per cent, at $18.41 after it reported a net profit of $US38 million ($A40.60 million) for the first quarter.
Warrnambool Cheese and Butter had added seven cents to $8.52 after federal Treasurer Joe Hockey cleared the way for Canadian food giant Saputo to acquire the dairy processor with no strings attached.
KEY FACTS
* At 1200 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 17 points, or 0.32 per cent, at 5,404.1.
* The broader All Ordinaries index was up 17.8 points, or 0.33 per cent, at 5,398.6.
* The December share price index futures contract was up 20 points at 5,421, with 11,998 contracts traded.
* National turnover was 770.6 million securities worth $1.2 billion.
