Australian shares finished slightly higher on Tuesday, stemming the market’s five-day run of losses.
Investors largely sat on the sidelines after the US and UK markets were closed overnight, offering few leads for the local bourse.
EL&C Baillieu Stockbroking director Richard Morrow said that, in the absence of strong overseas leads all eyes focused on the Australian dollar which dipped to 96 US cents and rallied more than 1.3 cents in afternoon trade.
“That tended to steady the ship,” Mr Morrow said.
“There was a lack of leadership in the market and there are probably much bigger issues facing the global economy.”
A lack of local news prompted investors to refocus on the the economies of Japan and China and US money printing.
“The market has just wallowed around,” Mr Morrow said.
Many Australian companies operate in the US and benefit if the US dollar rises in value.
Money has moved back into the greenback, as the prospect of an end to the quantitative easing stimulus program in the US grows.
Locally, most bank stocks were firmer after being punished in recent days.
Commonwealth Bank added 41 cents to $68.60, Westpac gained 25 cents to $29.47 and ANZ put on 23 cents to $28.08.
National Australia Bank, however, had lost 12 cents to $31.12.
Resources stocks were down, with commodity prices lower on the US currency’s rise.
Rio Tinto was down 23 cents at $52.88, BHP was three cents lower at $33.98 and Fortescue Metals had dropped four cents to $3.39.
Telstra was up two cents at $4.92.
KEY FACTS
* At the close on Tuesday, the benchmark S&P/ASX200 index was up 10.8 points, or 0.22 per cent, at 4,970.7 points.
* The broader All Ordinaries index was 12 points, or 0.24 per cent, firmer at 4,950.6.
* On the ASX 24, the June share price index futures contract was 15 points higher at 4,966 with 22,646 contracts traded.
* National turnover was 647 million securities worth $1.8 billion.
* The spot price of gold in Sydney finished at $US1,389.85 per fine ounce, down $US3.85 from Monday’s closing level of $US1,393.70 per ounce.
