The Australian market has opened higher, led by gains for the four major banks.
IG markets strategist Stan Shamu said the local market has been dragged higher by the major financial stocks, and the mining giants did not fall as hard as expected after recent drops in commodity prices.
“It’s all about the banks’ upcoming earnings,”
“Everyone’s starting to position themselves for what could be another round of increases in dividend growth from these banks.
“At the same time the miners haven’t disappointed quite as much as expected at open.”
Commonwealth Bank jumped 60 cents to $71.44, Westpac surged 37 cents to $32.94, ANZ gained 19 cents to $30.07 and National Australia Bank added 19 cents to $30.07.
ANZ and Westpac are due to post half-yearly results this week.
BHP Billiton fell 28 cents to $32.30, Rio Tinto dived 48 cents to $55.32 and Fortescue dropped two cents to $3.55.
Tabcorp shares gained five cents, or 1.5 per cent, to $3.39 after the betting firm reported a 2.6 per cent lift in third quarter revenue to $480.3 million.
OceanaGold March is expected to post its quarter financial and operational results later on Monday.
In economic news, BHP Billiton, Rio Tinto, Xstrata and Minerals Council of Australia will appear before the Senate Economics Legislation Committee’s public hearing into the development and operation of the Minerals Resource Rent Tax (MRRT).
KEY FACTS
* At 1020 AEST, the benchmark S&P/ASX200 index was up 23.2 points, or 0.46 per cent, at 5,120.7 points.
* The broader All Ordinaries index was up 21.1 points, or 0.42 per cent, at 5,103.8 points.
* The June share price index futures contract was up seven point at 5,114 points, with 7,206 contracts traded.
* National turnover was 187.47 million securities worth $234.16 million.
