The Australian stock market has bounced back after five consecutive days of falls, helped by gains in banking and mining shares.
CMC Markets chief market strategist Michael McCarthy said the market is doing surprisingly well.
“We have seen iron ore prices move higher and that does speak to some major players, even so, that strength is surprising,” he said.
Mr McCarthy said the factors driving the share market would be some bargain hunting after several days of losses as well as a bounce in iron ore prices.
National Australia Bank shares came out of a trading halt soon after the market opened and were down 23.37 cents, or 0.67 per cent, at $34.47 after completing the first stage of its $5.5 billion capital raising.
“It’s essentially held the value of its price,” Mr McCarthy said.
“It’s a very strong performance.”
Among the major banks, the Commonwealth lifted 41 cents to $82.58, while ANZ gained 29 cents to $32.21 and Westpac advanced 23 cents to $33.93.
Shares in building products maker CSR were up 20.5 cents, or 5.5 per cent, at $3.955, after it reported 43 per cent rise in its underlying full year net profit.
Orica shares gained 2.3 per cent to be at $20.65, despite posting a three per cent fall in its half year net profit.
However the explosives maker said its transformation program is on track, which is boosting earnings and reducing net debt by 20 per cent.
Mining giant BHP Billiton gained 53.5 cents, or almost 1.7 per cent, to $32.355 in early trade, while Rio Tinto was 71 cents higher to $59.33 and Fortescue Metals lifted three cents, or more than one per cent, to $2.60.
Oil and gas giant Woodside was 18 cents higher to $34.32, while Santos picked up nine cents to $8.68.
KEY FACTS
* At 1040 AEST on Tuesday, the benchmark S&P/ASX200 index was up 13.4 points, or 0.24 per cent, at 5,638.6.
* The broader All Ordinaries index was up 11.7 points, or 0.21 per cent, at 5,639.3.
* The June share price index futures contract was 53 points higher at 5,627 with 10,675 contracts traded.
* National turnover was 666 million securities worth $1.8 billion.
