The Australian share market has closed higher due to gains among the major banks.
Australian Stock Report head of research Chris Conway said bargain hunting has helped lift the financial stocks, however investors were being cautious ahead of the banks interim earnings reporting season due to start next month.
“Today it is all about the banks. They are up and given their weight so is the market despite a lacklustre lead from the US,” he said.
“There is a bit of bargain hunting rather than a renewed interest in the banks.”
The resource stocks were also higher following rallies in commodity prices, including a 2.5 per cent lift in iron ore prices.
Investors continue to sell stocks that have a high exposure to China’s consumer sector as Australia’s biggest trading partner changed laws to include taxes and tariffs on imported postal goods.
Mr Conway said investors were nervous about how the new taxes will impact on Australian producers, including vitamin maker Blackmores and baby formula maker Bellamy’s.
As for the banks, Commonwealth Bank added $1.52 to $72.22, National Australia Bank gained 63 cents to $25.56, Westpac rose 71 cents to $29.13, and ANZ climbed 59 cents to $22.84.
In the resources sector, global miner BHP Billiton rose 35 cents to $16.90, Rio Tinto gained $1.05 to $45.33, and Fortescue Metals was up 11 cents at $2.96.
Blackmores plunged $11.96, or 6.76 per cent, to $165, Bellamy’s descended $1.07, or 10.75 per cent, to $8.88 and The A2 Milk Company shed 11 cents, or 6.45 per cent, to $1.595.
Elsewhere in the retail sector, Wesfarmers was down 49 cents to $39.53, and Woolworths declined eight cents to $20.74.
KEY FACTS:
* At 1615 AEST, the benchmark S&P/ASX200 index was up 44.1 points, or 0.89 per cent, at 4,975.6 points.
* The broader All Ordinaries index was up 40.5 points, or 0.81 per cent, at 5,053.7 points.
* The June share price index futures contract was up 51 points at 4,953 points, with 22,990 contracts traded, according to preliminary calculations.
* Preliminary national turnover was 1.9 billion securities traded, worth $3.5 billion.
