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Aussie stocks close up, led by defensives

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Australian stocks have closed firmer, with defensive sectors leading the broader market higher.

At 1615 AEST on Tuesday, the benchmark S&P/ASX200 index was up 15.7 points, or 0.36 per cent, at 4,359.4 points, while the broader All Ordinaries index had risen 14.1 points, or 0.32 per cent to 4,387 points.

On the ASX 24, the September share price index futures contract was 13 points higher at 4,350 points, with 20,487 contracts traded.

The Australian market opened about 0.3 per cent firmer, as local investors looked past a negative finish on Wall Street.

Stocks then slipped back approaching noon before rallying ahead of the close.

Utilities stocks were the best-performing sector, climbing 1.68 per cent according to IRESS data.

Other defensive sectors such as healthcare (up 1.57 per cent), telecoms (up 0.82 per cent) and consumer staples (up 0.66 per cent) also had a good day.

CMC Markets sales trader Ben Taylor said investors were staying on the sidelines ahead of the US Federal Reserve meeting at Jackson Hole, Wyoming, scheduled for later this week.

“Risk is being taken off the table ahead of the meeting,” Mr Taylor said in a research note.

“News flow remains weak and volumes low as we await the Jackson Hole meeting at the week’s end.”

Making news on Tuesday, Virgin Australia said it had returned to profitability with net profit of $22.8 million.

The stock closed steady at 48 cents.

Gaming machine supplier Aristocrat Leisure said first half net profit rose 40 per cent to $34.7 million.

The result, and a positive outlook statement, resulted in its share price rising $1.90, or 7.39 per cent, to $2.76.

Grains marketer and malt producer GrainCorp said it had acquired two food oils businesses for $472 million and planned to combine them to form GrainCorp Oils.

GrainCorp was in a trading halt and last traded at $9.85.

The spot price of gold in Sydney was $US1,660.22 per fine ounce, down $US12.83 from Monday’s local close of $US1,673.05 per ounce.

National turnover was 1.6 billion securities worth $3.5 billion, with 439 stocks up, 503 down and 350 unchanged.