The share market has edged higher despite the negative impact of speculation banks could be hit with a deposit levy.

Reports the federal government wanted banks to pay a deposit insurance levy resulted in a panicked sell-off among the big four banks, Invast market analyst Peter Esho said.

“I think it was a major overreaction,” he said.

“It goes to show that the banks are fragile, and any sign of a disappointment they will be sold.”

Commonwealth Bank dropped $1.09 to $73.12, ANZ lost 37 cents to $29.39, National Bank fell 50 cents lower to $30.73, and Westpac shed two cents to $30.87.

Mr Esho said other sectors were buoyed by further falls in the Australian dollar, which has dropped below 90 US cents for the first time in almost three years.

Among the miners, BHP Billiton was up 53 cents to $35.17 and Rio Tinto was 43 cents higher at $57.94.

With more overseas tourists set to take advantage of a lower Australian dollar, James Packer’s casino operator Crown gained 53 cents, or 4.14 per cent, to $13.33.

“As Australia becomes a little bit more attractive as a tourist destination from a currency perspective, it’s going to help Crown with their assets and casinos,” Mr Esho said.

Packaging firm Amcor gained 15 cents to $1.42 after announcing it will split its Australasia and Packaging Distribution (AAPD) business from Amcor’s other operations.

Toll road owner Transurban added 18 cents to $6.96 after it forecast traffic growth and posted strong profit growth in the 2012/13 financial year.

KEY FACTS

* The benchmark S&P/ASX200 index gained 9.5 points, or 0.19 per cent, to 5,061.5.

* The broader All Ordinaries index added 11.4 points, or 0.23 per cent, to 5,047.1.

* On the ASX 24, the September share price index futures contract was three points lower at 5,007 points, with 27,931 contracts traded.

* The spot price of gold in Sydney finished at $US1,320.00 per fine ounce, down $12.35 from $US1,332.35 on Wednesday.

* National turnover was 1.8 billion securities worth $5.2 billion.