The Australian share market has closed higher with the financials leading widespread gains across almost all sectors.
The benchmark S&P/ASX200 index closed Monday 0.36 per cent higher, with the mining-related materials and healthcare the only sectors to finish lower.
Morgans Brisbane senior private client adviser Bill Chatterton said an upbeat jobs report from the US at the end of last week and yield hungry investors drove the financials higher.
“The banks have been very strong today following positive leads from the US non-farm payroll numbers,” Mr Chatterton said.
“The banks’ yields are also high and the market is confident the dividends are sustainable which is a real catalyst for value in the banks and support seen in their share prices.”
Among the big four, Westpac rose 0.92 per cent, National Australia Bank lifted 0.87 per cent, , Commonwealth Bank gained 0.83 per cent and ANZ was up 0.42 per cent.
Local energy stocks were mixed, after oil prices closed around three per cent down overnight with Woodside Petroleum up 0.14 per cent, and Santos down 1.36 per cent.
As for the major miners, Fortescue Metals declined nearly two per cent, BHP Billiton was down 0.28 per cent, while Rio Tinto recovered to rise 0.09 per cent after weakness in base metal prices offset strong iron ore price gains.
South32 fell 3.2 per cent after the company said a safety review will keep its Appin coal mine in NSW suspended for an extended time.
In company news, shares in Tabcorp were up 1.42 per cent to $4.28 despite the competition regulator calling for a court to review the approval granted to the poker machine giant to buy lottery owner Tatts.
Tatts’ shares rose 0.75 per cent to $4.03.
Shares in building products company CIMIC lifted 0.76 per cent to $38.49 after announcing a Middle East joint venture had won a $A224 million contract to build residential towers in Dubai.
Meanwhile, shares in blood products developer CSL dropped 0.63 per cent to $133.30 after it vowed to fight a legal challenge launched by US biotech Bioverativ over a patent for CSL’s haemophilia B drug.
Shares in Slater and Gordon have been placed in a trading halt, pending an update on the troubled law firm’s legal woes.
The Australian dollar was firmer partly due to a $US1.80 lift in the iron ore price overnight, with the US dollar only enjoying slight gains from the positive jobs report.
The local unit was trading at 76.01 US cents at 1630 AEST, from 75.89 US cents on Friday.
ON THE ASX:
* At the close, the benchmark S&P/ASX200 was up 20.8 points, or 0.36 per cent, at 5,709.2 points.
* The broader All Ordinaries index was up 19 points, or 0.33 per cent, at 5,749 points.
* The September SPI200 futures contract was up 25 points, or 0.44 per cent, at 5,676 points.
* National turnover was 1.844 billion securities traded worth $4.959 billion.
CURRENCY SNAPSHOT AT 1700 AEST
CURRENCY ASK BID PREVIOUS
AUD/USD 0.7608 0.7603 0.7605
AUD/JPY 86.91 86.83 86.47
AUD/EUR 0.6675 0.6669 0.6664
AUD/NZD 1.0456 1.0444 1.0431
AUD/GBP 0.5902 0.5897 0.5891
EUR/USD 1.14 1.1398 1.1405
JPY/USD 114.23 114.2 113.88
EUR/JPY 130.22 130.17 129.7
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,206.80 per fine ounce, from $US1,221.84 per fine ounce on Friday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 4.50 per cent April 2020, 1.9340pct, from 1.9333pct
* CGS 4.75pct April 2027, 2.6826pct, from 2.6717pct
Sydney Futures Exchange prices:
* August 2017 10-year bond futures contract at 97.980 (implying a yield of 2.120pct), from 97.270 (2.730pct) on Thursday
* August 2017 3-year bond futures contract at 97.260 (2.740pct), from 97.970 (2.030pct).
* Bond market closes taken at 1630 AEST previous local session)
