Encouraging signs for the housing sector have driven a rise in banking shares, which pushed the market to a fifth straight day of gains.
The release of China’s latest economic growth figure of 7.5 per cent – in line with expectations – also helped the major resources stocks improve from early lows.
“The financial space saw good buying, probably helped by another solid auction clearance rate in Sydney over the weekend,” IG chief market strategist Chris Weston said.
“Housing seems in a good space right now, especially after May home loan values have hit their highest level since 2009.”
Markets are also tipping a rate cut by the Reserve Bank of Australia in August, which would further boost the housing market, and China’s economic data did nothing to change that view, Mr Weston said.
China’s latest economic growth rate was down from 7.7 per cent previously.
Westpac was the best performing bank, up 25 cents to $29.36, while ANZ gained 23 cents to $28.95, Commonwealth Bank added 28 cents to $71.25 and NAB was nine cents higher at $30.03.
Among other financial companies, Macquarie Group gained 42 cents to $45.16 and property owner Goodman Group added eight cents to $4.80.
In resources, BHP Billiton lost six cents to $33.25, up from its earlier low of $32.87, and Rio Tinto added three cents to $54.77, up from an earlier low of $54.22.
Smaller miners fared worse, with Fortescue Metals down four cents at $3.50, and gold miner Newcrest shed 46 cents to $11.63.
One of the worst performers was Treasury Wine Estates, after it said it would take a $160 million hit from measures it is taking to overcome a glut of stock in the United States.
Its shares lost 71 cents, or 12.2 per cent, to $5.11.
KEY FACTS
* The benchmark S&P/ASX200 index gained 7.2 points, or 0.14 per cent, at 4,981.1.
* The broader All Ordinaries index added 8.1 points, or 0.16 per cent, at 4,965.6.
* On the ASX 24, the September share price index futures contract was four points higher at 4,940 with 19,665 contracts traded.
* The Sydney gold price was $US1,286.07, up $US8.32 from $US1,277.75 on Friday.
* National turnover was 1.27 billion securities worth $3.47 billion.
