The local share market has closed marginally lower after a shaky start as broad-based losses held back gains in financial and mining stocks.
The benchmark S&P/ASX200 index closed 0.1 per cent lower at 5,714.2 points with mining stocks posting the strongest gains.
OptionsXpress market analyst Ben Le Brun said investors had a lack of new direction to wade back into the market on Tuesday after a shaky start in early-morning trading.
“What is holding us together is strength from the financials and some support in the materials sector,” Mr Le Brun said.
“They are two heavily-weighted sectors and if it wasn’t for them, we would be a lot lower today as pretty much every other sector is under water.”
The financials sector was modestly in the green earlier on Tuesday with sentiment still down following South Australia’s decision to ape the federal government’s bank levy.
Mr Le Brun said the Commonwealth Bank’s decision to increase its interest rates for customers with interest-only mortgages, in line with the other three banks, boosted the financials sector to gain ground at close.
The sector was trading 0.26 per cent higher with Westpac, ANZ and the Commonwealth Bank trading up between 0.03 per cent and 0.97 per cent while National Australia Bank closed 0.03 per cent lower.
Iron ore futures gained during Tuesday, lifting the materials sector, with market analyst Gary Huxtable attributing to boost to comments by Chinese Premier Li Keqiang, who sought to calm fears about debt levels in China at a World Economic Forum meeting in Dalian.
“The spike in iron ore prices (on the back of Chinese Premier’s statements at the World Economic Forum) has the largest impact on the recovery of our local market today,” said Mr Huxtable, a client adviser at Atlantic Pacific Securities.
Fortescue Metals led gains with a 3.84 per cent rise to $4.87, while BHP was up 0.04 per cent and Rio Tinto gained 0.04 per cent after backing a $US2.69 billion bid by China’s Yancoal for its NSW Hunter Valley coal assets, over a rival Glencore offer.
Energy stocks remained in negative territory despite a tick up in global oil futures prices overnight, with concerns of oversupply still weighing on the market.
In company news, vitamin maker Blackmores fell 4.4 per cent to $89.81 after it confirmed the departure of long-time chief executive Christine Holgate, who will leave in September to take over as CEO of Australia Post.
The Australian dollar gained ground against the greenback in afternoon trading on the back of the improved iron ore outlook.
The local currency was trading at 76.08 US cents at 1630 on Tuesday, up from 75.76 US cents on Monday and its highest level in a week.
ON THE ASX:
* The benchmark S&P/ASX200 closed down 6 points, or 0.1 per cent, at 5,714.2 points.
* The broader All Ordinaries index was down 5.9 points, or 0.1 per cent, at 5,752.5 points.
* The September SPI200 futures contract was down 11 points, or 0.19 per cent, at 5,655 points.
* National turnover was 2.5 billion securities traded worth $5.5 billion.
CURRENCY SNAPSHOT 1700
CURRENCY ASK BID PREVIOUS
AUD/USD 0.7606 0.7602 0.7582
AUD/JPY 84.99 84.88 84.79
AUD/EUR 0.68 0.6791 0.6779
AUD/NZD 1.0418 1.0401 1.0395
AUD/GBP 0.5981 0.5973 0.596
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,250.67 per fine ounce, from $US1,254.09 per fine ounce on Monday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 4.50 per cent April 2020, 1.7595pct, from 1.7704pct
* CGS 4.75pct April 2027, 2.3535pct, from 2.3751
Sydney Futures Exchange prices:
* August 2017 10-year bond futures contract at 97.600 (implying a yield of 2.400 pct) from 97.605 (2.395pct) on Monday
* August 2017 3-year bond futures contract at 98.19pct (1.81pct) from 98.18 (1.82pct).
