The share market has edged higher as gains in the financial sector helped to offset weakness among gold miners.
It was a quiet session for investors, devoid of local or overseas economic news, and as concern about Greece’s finances fades, Patersons Securities economist Tony Farnham said.
The main news of the day came from the banking regulator, the Australian Prudential Regulation Authority, and its direction on banks to lift capital reserves held against loans.
“APRA’s announcement had the market a little concerned at first but once they read the details, they came to the conclusion that a lot of this was already alerted to,” Mr Farnham said.
“We had a relief rally in ANZ because it impacts them less, because mortgages as a proportion of their total loan book is less.”
ANZ added 41 cents to $32.85, Commonwealth Bank gained 38 cents to $88.36, National Australia Bank lifted 10 cents to $34.44 and Westpac was three cents higher at $34.60.
Weaker gold prices and a selloff of gold on the Chinese market hit the local gold miners.
Putting more pressure on Newcrest Mining shares was the suspension of work at its Hidden Valley mine in Papua New Guinea following a worker’s death.
Newcrest fell $1.33, or 10.1 per cent, to $11.87, while Evolution Mining shed 16.5 cents, or 14.5 per cent, to 97 cents.
BHP Billiton dropped 11 cents to $26.99, Rio Tinto gained 86 cents to $53.87 and Fortescue Metals Group was three cents higher at $1.745.
Sonic Healthcare shed 61 cents to $21.25 after the medical diagnostics company downgraded its full year earnings guidance.
Mr Farnham said investors were keenly waiting on Tuesday’s release of minutes from the July Reserve Bank board meeting.
“People will be looking to see if there are any more dovish comments,” he said.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was up 16.8 points, or 0.3 per cent, at 5,686.9 points.
* The broader All Ordinaries index was up 16.5 points, or 0.29 per cent, at 5,669 points.
* The September share price index futures contract was up 23 points at 5636 points, with 16,590 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,117.60 per fine ounce, down $US27.20 on Friday’s price of $US1,144.80.
* National turnover was 1.6 billion securities worth $3.55 billion.
