The Australian sharemarket is higher buoyed by strength from the major banks and despite weakness in the resources sector.
CMC Markets chief analyst strategist Michael McCarthy said the local bourse was bouncing back after Monday’s negative momentum with the banks, telcos and healthcare stocks leading the way.
“The yield play is back on,” he said.
“It looks like the start of the European Central Bank’s buying program has reminded people that we’re in a low yield environment, and they’ve drifted back to those sectors that have delivered to them over the last two years.”
The major banks were all in positive territory, with Commonwealth Bank up 49 cents at $91.01, National Australia Bank 34 cents stronger at $37.97, ANZ adding 23 cents to $35.39, and Westpac gaining 34 cents to $37.70.
Ramsay Health Care rose 40 cents to $68.04, bionic ear maker Cochlear added 99 cents at $89.08 and vaccines supplier CSL jumped $1.32 at $93.62.
Telstra was 5.5 cents higher at $6.20.
Meanwhile, the iron ore price has tumbled 91 US cents to $US58.58 a tonne – its lowest level since May 2009, putting further pressure on the miners.
BHP Billiton shed 34 cents to $31.81, Rio Tinto dropped 71 cents to $58.49 and Fortescue Metals slipped 2.5 cents to $2.12.
Meanwhile, BHP’s iron ore president Jimmy Wilson and Rio’s iron ore chief executive Andrew Harding are slated to speak at the Global Iron Ore and Steel Forecast Conference in Perth.
Oil and gas producer Woodside Petroleum reversed 32 cents to $34.52 and Santos shed six cents to $7.49.
KEY FACTS
* At the 1030 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 9.9 points, or 0.17 per cent, at 5,831.2.
* The broader All Ordinaries index was up 8.6 points, or 0.15 per cent, at 5,801.6.
* The March share price index futures contract was 10 points higher at 5,825 with 6,462 contracts traded.
* National turnover was 251 million securities worth $452 million.
