The Australian share market has closed slightly higher following a lacklustre performance from the heavyweight banks and mining stocks.
IG market analyst Angus Nicholson said the US dollar was responsible for a lot of the weakness in mining stocks.
The greenback had rallied in a positive reaction to US Federal Chair Janet Yellen’s comment that it would be appropriate for a US rate hike in coming months, Mr Nicolson said, and that was weighing on commodity prices.
“It has been a bit negative in the banking and materials space while most of the other sectors are in the green,” he said.
The banks were down after strong consecutive gains last week which drove the sharemarket to a nine-month high on Friday.
Mr Nicholson said trading volumes were light given Wall Street will be closed for Memorial Day on Monday night, Australian time, and as the market waits for key domestic and international economic data.
The Australian Bureau of Statistics will release gross domestic product data on Wednesday, while the US will release manufacturing data and employment figures later this week.
In the local market, mining giant BHP Billiton was down 13 cents at $19.24, while Rio Tinto shed six cents to $44.77.
The energy players were in positive territory with Oil Search up five cents to $6.88 and Woodside Petroleum up 24 cents to $28.07.
Among the major banks, ANZ dropped 16 cents to $25.69, Westpac fell 10 cents to $30.88, Commonwealth Bank slipped 72 cents to $78.18, while National Australia Bank was down five cents to $27.25.
Among the better performers were the retailers with Woolworths up 31 cents, or 1.4 per cent, at $22.39, and Wesfarmers up 33 cents, or 0.8 per cent, at $41.50.
Shares in Spotless Group jumped more than five per cent, or six cents, to $1.145, after the cleaning and catering business said it is considering the sale of its laundries business as part of a strategy review.
While shares in Patties Foods jumped by more than 17 per cent, or 23.5 cents, to $1.565 after the pies and frozen desserts supplier received a $230 million non-binding, incomplete takeover proposal from private equity firm Pacific Equity Partners (PEP).
KEY FACTS:
* At the close on Monday, the benchmark S&P/ASX 200 index was up 2.1 points, or 0.04 per cent, at 5,408 points.
* The broader All Ordinaries index was up 3.9 points, or 0.07 per cent, at 5,473.6 points.
* The June share price index futures contract was up 3 points at 5,413 points, with 16,612 contracts traded.
* The spot price of gold in Sydney at 1700 AEST was $US1,204.70 per fine ounce, down $US16.50 from $US1,221.20 on Friday.
* National turnover was 2.45 billion securities traded, worth $4.29 billion.
