A better-than-expected earnings report and dividend from ANZ Bank has helped the Australian share market trade higher.
ANZ rose $1.25, or 4.15 per cent, to $31.35 by 1200 AEST, after reporting a one per cent lift in first half net profit.
The bank’s underlying cash profit, its preferred measure, jumped 10 per cent to $3.18 billion, slightly above expectations.
The bank’s 73 cents per share fully-franked dividend was also above market expectations.
Lonsec senior client adviser Michael Heffernan said the ANZ’s report had been greeted enthusiastically.
“If you want to know what the colour of the market is at the moment, it is this dividend performance of stocks,” he said.
“ANZ hit the bullseye with an 11 per cent increase in dividend.”
Mr Hefferaan said the local bourse also benefited from calmness on international markets overnight.
Elsewhere in the banking sector, Commonwealth Bank lifted 95 cents to $72.55, National Australia Bank improved 81 cents to $33.89, and Westpac added 37 cents to $33.49.
Among other stocks, Whitehaven Coal eased one cent to $1.95 after the company said weak coal markets and a strong Australian dollar continued to affect its overall performance.
Westfield Group dipped two cents to $11.56 after it sold its 50 per cent stake in its Brazil joint-venture to the Almeida Junior Family for an undisclosed sum.
KEY FACTS
* At 1205 AEST, the benchmark S&P/ASX200 index was up 39 points, or 0.76 per cent, at 5,164.8 points.
* The broader All Ordinaries index was up 35.6 points, or 0.7 per cent, at 5,143.9 points.
* The June share price index futures contract was up 28 points at 5,157 points, with 14,063 contracts traded.
* National turnover was 601.4 million securities worth $1.74 billion.
