The Australian share market shrugged off negative offshore leads to finish higher, driven by strong performances among financial stocks.
At the close on Thursday, the benchmark S&P/ASX200 index was up 19.4 points, or 0.46 per cent, at 4,272.7, while the broader All Ordinaries index was up 17.9 points, or 0.41 per cent, at 4,364.9.
The June share price futures index contract was 25 points stronger at 4,289 points with 27,834 contracts traded.
Investor sentiment was surprisingly positive, given a mostly lower close on Wall Street and China’s manufacturing activity falling to a four-month low in March, Australian Stock Report senior equities analyst Benny Sada said.
“In spite of that, our market has managed to put on about a half of one per cent gain and that’s largely on the back of our financial sector,” he said.
“There’s an increasing understanding that interest rates will come off over the next six months and with that it … makes lending more attractive,” RBS Morgans director Bill Chatterton said.
The big banks led the financial sector higher, with National Australia Bank the standout performer, gaining 29 cents, or 1.2 per cent, to $24.39.
Investment bank Macquarie Group surged 84 cents, or 2.97 per cent, to $29.11, while QBE Insurance jumped 28 cents, or 2.06 per cent, to $13.90.
Market heavyweight BHP Billiton firmed 10 cents to $34.80 and Rio Tinto fell 67 cents, or 1.03 per cent, to $64.67.
“Our mining sector as a whole managed to hold up despite that really bad Chinese manufacturing result,” Mr Sada said.
Iron ore miner Fortescue Metals Group added two cents to $6.08.
Gold major Newcrest Mining advanced 58 cents, or 2.02 per cent, to $29.35, breaking a three-day decline that wiped five per cent off its share price.
The spot price of gold in Sydney was $US1,648.90 per fine ounce by 1618 AEDT, down $US1.70 on Wednesday’s closing price of $US1,650.60.
Sigma Pharmaceuticals was the standout performer on the local bourse, Mr Sada said.
The company’s stock surged 3.5 cents, or 5.69 per cent, to 65 cents, after Sigma reported a net profit of $49.17 million for the 12 months to January 31, a marked improvement on the loss of $235.38 million in the prior year.
David Jones continued to decline, losing three cents, or 1.23 per cent, to $2.40 but rival Myer added two cents to $2.26.
Wagering and gaming firm Tabcorp Holdings, rose one cent to $2.67, after raising $250 million from the bond market, part of which it will use to pay off debt.
Market turnover reached 2.18 billion shares worth $4.38 billion, with 491 stocks up, 519 down and 408 steady.
