The Australian share market has closed higher as better than expected corporate earnings reports and expectations of a good result from global miner BHP Billiton boosted sentiment.
OptionsXpress market analyst Ben Le Brun said the local bourse had enjoyed strong trading on Tuesday despite several big stocks, including the Commonwealth Bank, trading ex-dividend.
Investors anticipate strong earnings figures from BHP Billiton, which reports its annual results after the market closes.
“It’s been a very strong outperformance just ahead of the BHP earnings number,” Mr Le Brun said.
Mr Le Brun said most of the company earnings reports out on Tuesday had been better than expected, and the easing of geopolitical concerns in Ukraine had also helped push the market higher.
He said the financial results for retailer Dick Smith, which is not among the market’s top 200 companies, had been particularly impressive.
In the resources sector, according to preliminary figures, BHP Billiton was 53 cents higher at $39.68.
Rio Tinto was up $1.05 at $66.40, and Fortescue Metals improved 10 cents to $4.62.
Steel and mining group Arrium jumped nine cents, or 11.92 per cent, to 84.5 cents after it lifted its full year profit by 83 per cent.
Oil Search eased 12 cents to $9.33 despite increasing its first half net profit by 34 per cent and forecasting higher production and sales.
The banking sector was mixed. Commonwealth Bank was down $1.41 at $79.99 after paying out its final dividend.
National Australia Bank dipped 29 cents to $33.93, after a disappointing quarterly trading update on Monday.
Westpac lifted 53 cents to $34.78, and ANZ gained 27 cents at $32.82.
Insurer QBE was in a trading halt after it said it would sell off or float businesses in three continents, including Australia, as it works to get back on track after another disappointing profit slide. QBE last traded at $10.71
Insurance Australia Group formed three cents to $6.29 after its profit soared 59 per cent and more growth was flagged.
Retailer Dick Smith surged 17.5 cents, or 8.77 per cent, to $2.17 after it beat its prospectus forecasts and tipped sales growth in the year ahead.
KEY FACTS
* At 1623 AEST on Tuesday, preliminary closing figures indicated that the benchmark S&P/ASX200 index was up 36.7 points, or 0.66 per cent, at 5,623.8 points.
* The broader All Ordinaries index was up 37.8 points, or 0.68 per cent, at 5,618.4 points.
* The September share price index futures contract was up 52 points at 5,581 points, with 32,236 contracts traded.
* Preliminary national turnover was 1.9 billion securities worth $5.26 billion.
