The share market has posted a modest gain as strength in the heavyweight financial sector offset a slump in energy stocks as the federal government flagged potential restrictions on gas exports.
The benchmark S&P/ASX200 index rose 0.1 per cent, with afternoon gains helping to overcome a lacklustre start to the day, which was caused by a late sell off on Wall Street.
That sell off was caused by reports the US may place North Korea on its state sponsors of terrorism list, CommSec market analyst Juliana Roadley, and was not associated with the release of the first details of US President Donald Trump’s tax plan.
His planned tax breaks had been well flagged, and the announcement lacked any specific details, Ms Roadley said.
The Australian dollar continued to slide after Wednesday’s inflation data that showed core inflation remains below the central bank’s target range.
On the share market, investors sought out financial stocks, with investment bank Macquarie Group gaining one per cent and the four major banks gaining between 0.6 and one per cent.
Santos dropped 5.5 per cent and Origin Energy fell 3.6 per cent as the government said it will soon be able to put in place export controls when there is a shortage of gas in the domestic market.
“If the government announces they’re going to put on quotas, that means that they can start to control the price. That’s a major concern,” Ms Roadley said.
Miners Rio Tinto and BHP Billiton dropped 1.2 per cent and 0.9 per cent respectively, and Fortescue Metals fell 3.2 per cent.
Wesfarmers shed 1.5 per cent after Coles posted weaker than expected quarterly sales growth, and its Target business continued to struggle.
Investors dumped Ten Network, which dropped 19 per cent to a record low of 36 cents, as the broadcaster warned it needs to secure new funding before December.
ON THE ASX:
* The benchmark S&P/ASX200 was up 9.5 points, or 0.16 per cent, at 5,912 points.
* The broader All Ordinaries index was up 7.6 points, or 0.13 per cent, at 5,944.4 points.
* The June SPI200 futures contract was up 11 points, or 0.19 per cent, at 5,909 points.
* National turnover was 2.4 billion securities traded worth $5.7 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 74.84 US cents, from 74.95 US cents on Wednesday
* 83.34 Japanese yen, from 83.53 yen
* 68.59 euro cents, from 68.61 euro cents
* 58.07 British pence, from 58.46
* 108.33 New Zealand cents, from 108.63 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,263.45 per fine ounce, up 15 cents from $US1,263.30 on Wednesday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 5.25 per cent March 2019, 1.680pct, from 1.692pct on Wednesday
* CGS 4.25pct April 2026, 2.550pct, from 2.569pct
Sydney Futures Exchange prices:
* March 2017 10-year bond futures contract at 97.36 (implying a yield of 2.64pct), up from 97.34 (2.66pct) on Wednesday
* March 2017 3-year bond futures contract at 98.14 (1.86pct), up from 98.12 (1.88pct)
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)
