The share market is higher as gains among the big banks and healthcare companies offset a slide in the resources sector.
The market is around half a per cent higher despite a sharp drop by the likes of Rio Tinto, BHP Billiton and Fortescue Metals.
Miners have been hit by another fall in Chinese iron ore prices, but their share price losses have been offset by strength across the rest of the market, IG market strategist Evan Lucas said.
“It’s a tale of two halves today unfortunately,” he said.
Fortescue was the worst affected, with its shares down nine cents, or 4.2 per cent, at $2.04, having earlier hit a five year low of $1.92.
Mr Lucas said the iron ore price fall added to concerns about Fortescue’s debt levels.
“Fortescue has a 93 per cent debt to equity ratio and the question would be whether or not that’s going to be downgraded again,” he said.
BHP Billiton was down 44 cents at $28.94 and Rio had dropped 48 cents to $56.38.
In the energy sector, Santos had fallen 14 cents to $7.66, Woodside had lost 14 cents to $34.26 and Oil Search was 23 cents weaker at $7.70.
Among the banks, Commonwealth Bank was up 95 cents at $87.18, Westpac had gained 16 cents to $34.48, National Australia Bank was 20 cents firmer at $34.97 and ANZ had added 27 cents to $32.47.
Medical device maker ResMed was among the best performers, with its shares jumping 62 cents, or eight per cent, to $8.42 following a better than expected quarterly earnings report on Friday.
Telstra had gained 6.5 cents to $6.40.
KEY FACTS
* At 1220 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 35.3 points, or 0.64 per cent, at 5,537.1 points.
* The broader All Ordinaries index was up 34 points, or 0.62 per cent, at 5,502.2 points.
* The March share price index futures contract was 42 points higher at 5,488 points, with 6,650 contracts traded.
* National turnover was 740 million securities worth $2.2 billion.
