The Australian share market has snapped a four-day losing streak, after encouraging US jobs data, the election of pro-European centrist Emmanuel Macron as French president, and other factors buoyed investors.
CMC Markets chief market analyst Ric Spooner said market sentiment was also boosted by a half-year result from Westpac that was broadly in line with expectations.
Away from the banks, takeover activity around publisher Fairfax and the easing of licence fees and restrictions on television broadcasters boosted media stocks, and Chinese trade data that was solid despite being weaker than anticipated also lifted enthusiasm.
“There’s a lot to be pleased about and not much to be worried about at the moment,” Mr Spooner said.
The Aussie dollar surrendered most of its early gains after the release of weak Australian building approval figures but subsequently made up that lost ground to be at 74.04 US cents at 1700 AEST – above its close on Friday at 73.86 US cents.
Mr Spooner said the Aussie had benefited from other data that was positive – the NAB business conditions survey and the Chinese trade figures for April – and stronger commodity prices overnight.
“With all that going on, the Aussie wasn’t prepared to get too weak on the basis of one figure,” Mr Spooner said.
Among the big four banks, Westpac was 0.7 per cent higher at $34.08 after booking a three per cent rise in first-half cash profit to $4 billion, but warning that its housing credit demand was set to slow.
Commonwealth Bank was up 1.1 per cent, National Australia Bank added 1.8 per cent, and ANZ, which went ex-dividend, eased 2.28 per cent.
In the media sector, television broadcasters made gains following a federal government move to slash TV licence fees and scrap restrictive ownership and market reach rules.
Ten Network soared 20.5 per cent to 26.5 cents, Nine Entertainment gained 5.3 per cent to $1.38 , and Seven Network improved 3.4 per cent to 76.5 cents.
Fairfax Media jumped 2.4 per cent to $1.085 after the struggling publisher’s board received an unsolicited $2.2 billion proposal to split up its businesses from a private equity-led consortium.
Myer dropped 9.5 per cent to $1.00 after a Credit Suisse analyst downgraded earnings expectations for the department store operator.
Among the major miners BHP Billiton was up 1.6 per cent, Rio Tinto lifted 2.3 per cent, and Fortescue Metals climbed 1.5 per cent.
The Australian dollar fell back below 74 cents immediately after the release of official data on Monday showing home building approvals fell 13.4 per cent in March.
But it regained ground as official trade data released by China on Monday showed that exports rose by eight per cent in April compared to a year earlier, which was less than expected, and imports rose by 11.9 per cent, also weaker than anticipated.
ON THE ASX AT 1630 AEST:
* The benchmark S&P/ASX200 was up 34.3 points, or 0.59 per cent, at 5,870.9 points.
* The broader All Ordinaries index was up 34 points, or 0.58 per cent, at 5,897.8 points.
* The June SPI200 futures contract was up 44 points, or 0.76 per cent, at 5,861 points.
* National turnover was 2.8 billion securities traded worth $7.3 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 74.04 US cents, from 73.86 US cents on Friday
* 83.47 Japanese yen, from 82.89 yen
* 67.41 euro cents, from 67.33 euro cents
* 57.03 British pence, from 57.08 pence
* 106.86 New Zealand cents, from 107.93 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,229.60 per fine ounce, down $US2.20 from $US1,231.80 on Friday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 5.25 per cent March 2019, 1.7266pct, up from 1.715pct on Friday
* CGS 4.25pct April 2026, 2.6138, up from 2.592pct
Sydney Futures Exchange prices:
* June 2017 10-year bond futures contract at 97.295 (implying a yield of 2.705pct), down from 97.320 (2.680pct) on Friday
* June 2017 3-year bond futures contract at 98.070 (1.930pct), down from 98.100 (1.900pct).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)
