The sharemarket has closed higher as strong profit growth by ANZ drove gains in the banking sector.
After falling in early trade, the market rebounded as investors focused on ANZ’s $1.73 billion cash profit for the first quarter of its fiscal year.
“Essentially the rise in the markets is because of the banks which have gone from strength to strength,” Bell Direct equities analyst Julia Lee said.
ANZ shares gained 65 cents, or 2.2 per cent, to $30.56.
Commonwealth Bank, which will report its half year result on Wednesday, added $1.07 to $75.92, National Australia Bank gained 48 cents to $33.89 and Westpac was 46 cents higher at $32.23.
“If Commonwealth Bank can produce something along the lines of ANZ that would been seen as a huge positive,” Ms Lee said.
Other corporate updates were met with less enthusiasm.
Macquarie shares lost $2.10, or 3.8 per cent, to $53.52 after it maintained its financial forecasts, but said merger and acquisition activity was muted.
Shares in hearing implants maker Cochlear fell $5.21, or 8.9 per cent, to $53.68, after it reported a 73 per cent fall in its first half profit.
Engineering company Bradken was also weaker, with its shares down 49 cents, or 9.4 per cent, at $4.72 after its first half profit dropped by 18.5 per cent.
Among the big miners BHP Billiton added five cents to $36.55, Rio Tinto dropped 38 cents to $66.64 and iron ore miner Fortescue was five cents higher at $5.64.
KEY FACTS
* At the close on Tuesday, the benchmark S&P/ASX200 index was up 32.4 points, or 0.62 per cent, at 5,254.5.
* The broader All Ordinaries index was up 30.8 points, or 0.59 per cent, at 5,267.3.
* The March share price index futures contract was 34 points higher at 5,203, with 27,099 contracts traded.
* National turnover was 1.9 billion securities worth $4.4 billion.