The Australian share market has closed slightly higher, boosted by what investors considered a good financial result from BHP Billiton despite a big drop in the global miner’s profit.
CMC Markets chief market strategist Michael McCarthy said although there was plenty going on overseas, Tuesday’s market action was dominated by local factors.
“One of the drivers today was that good report from BHP, the stock itself up almost three per cent, making the materials sector the top performer on the day,” Mr McCarthy said.
BHP Billiton’s net profit fell 47 per cent, but the group increased its dividend and announced fresh cost cutting.
Mr McCarthy said BHP’s revenue streams were down a lot less than investors had expected.
Mr McCarthy said investor focus will shift towards upcoming remarks from US Federal Reserve chair Janet Yellen on Wednesday that may indicate the timing of interest rate hikes in the US.
Markets are also awaiting statements from European Central Bank head Mario Draghi to see if there will be any increase to an economic stimulus effort announced last month.
BHP Billiton rose 94 cents, or 2.93 per cent, to $33.06.
Elsewhere in the resources sector, Rio Tinto fell 78 cents to $63.14, and Fortescue Metals firmed four cents to $2.46.
Oil Search nudged up one cent to $8.29 after a near tripling of production helped the company to a 72 per cent rise in annual profit.
Among the major banks, National Australia Bank was nine cents lower at $37.58, Westpac climbed 25 cents to $37.97, ANZ put on 25 cents at $35.29, and Commonwealth Bank jumped 63 cents to $91.04.
Insurer QBE surged 84 cents, or 7.24 per cent, to $12.45 after lifting its dividend following a strong improvement in annual profit.
Among other stocks, travel agency Flight Centre soared $4.25, or 12.06 per cent, to $39.50 as it has reaffirmed its full year guidance despite a 9.5 per cent slide in its first half profit.
Coles owner Wesfarmers, which traded without its recently paid dividend, dropped $1.25 to $45.46.
KEY FACTS
* At 1618 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 19 points, or 0.32 per cent, at 5,927 points.
* The broader All Ordinaries index was up 17.6 points, or 0.3 per cent, at 5,890 points.
* The March share price index futures contract was 27 points higher at 5,889 points, with 21,289 contracts traded.
* Preliminary national turnover was 1.58 billion securities worth $5.4 billion.
