The Australian share market shook off a negative start to finish higher on Tuesday as strength among the major banks outweighed weakness in the resources sector.
Options Express market analyst Ben Le Brun said the Australian market had picked up on indications that the benchmark market index in the United States would rise when trading resumes in the US after a public holiday.
“I’m thinking the (Australian) market has cued off the stronger lead-in from the Dow futures (Dow Jones Industrial Average futures contract) throughout the course of the session,” Mr Le Brun said.
Several big companies that are significant components of the Dow are set to report their quarterly earnings.
Mr Le Brun said the Australian market was also encouraged by rises on Asian markets on Tuesday.
China’s central bank has injected more credit into its financial system, allaying some of the concern about slower economic growth there.
Mr Le Brun said stocks in the energy and resources sector on the Australian bourse were dragging the chain on Tuesday, mainly as a result of a softer price for iron ore.
But the banks and other sector had lifted.
In the resources sector, global miner BHP Billiton was five cents poorer at $37.95 as it agreed to pay $US3 million ($A3.42 million) to Otto Energy to withdraw from an exploration joint-venture in the Philippines.
Rio Tinto dumped 69 cents at $65.80, and iron ore miner Fortescue Metals fell 26 cents to $5.41.
Among the major banks, the Commonwealth Bank improved 78 cents to $76.10, ANZ found 28 cents at $31.15, National Australia Bank advanced 35 cents to $33.99, and Westpac strengthened 26 cents to $31.79.
KEY FACTS
* At 1615 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 36.5 points, or 0.69 per cent, at 5,331.5 points.
* The broader All Ordinaries index was up 34.4 points, or 0.65 per cent, at 5,342.0 points.
* The March share price index futures contract was 34 points higher at 5290 points, with 13,821 contracts traded.
* National turnover was 1.33 billion securities worth $2.8 billion.