The Australian share market has closed higher as positive news from steelmaker BlueScope Steel and medical device maker ResMed buoyed investors ahead of the main company earnings season in February.
IG market strategist Evan Lucas said a profit warning from major logistics firm Brambles had dented the market on Monday, but BlueScope’s profit upgrade on Tuesday and an encouraging quarterly financial report from ResMed had boosted sentiment on Tuesday.
“We’re in the middle of confession season. Yesterday, we had bad news; today, we’ve had good news,” Mr Lucas said.
“We had a nice update from BlueScope, and then ResMed overnight in the US overnight reported, and they were good numbers as well.”
Mr Lucas said the news from BlueScope and ResMed suggests that company earnings growth may be on track to meet the expectation of market analysts.
“That’s a really positive thing,” Mr Lucas said.
Mr Lucas said the decision by US President Donald Trump to withdraw the US from the Trans-Pacific Partnership multilateral trade agreement was having little impact on the Australian share market.
BlueScope, Australia’s biggest steelmaker surged 83 cents, or eight per cent, to $11.21 after it flagged that its interim earnings will be up nearly 18 per cent from its previous guidance.
ResMed surged 60 cents, or 7.21 per cent, to $8.92. The sleeping disorder equipment supplier’s quarterly profit was lower, but its revenue jumped 17 per cent to $US530 million ($A700 million) and a recent acquisition, Brightree, was performing well.
Other big movers included mining services group Macmahon Holdings, which ascended 3.5 cents, or 31.82 per cent, to 14.5 cents after construction giant CIMIC launched a takeover bid, valuing the target at $174 million.
Elsewhere, in the resources sector, global miner BHP Billiton lifted 64 cents to $27.01, Rio Tinto improved $2.36 to $64.76, and Fortescue Metals added 34 cents to $6.54..
Among the major banks, National Australia Bank eased two cents to $30.04, Westpac dipped 13 cents to $31.65, ANZ lost 12 cents to $29.15, but Commonwealth Bank picked up 30 cents to $81.77.
Meanwhile the Australian dollar briefly broke through 76 US cents on Tuesday but had eased to 75.73 US cents at 1700 AEDT.
The greenback has been weaker amid investor concerns over protectionist rhetoric by US President Donald Trump, who has pulled the United States out of the Trans-Pacific Partnership regional trade agreement.
ON THE ASX:
* On Tuesday, the benchmark S&P/ASX200 was up 39.1 points, or 0.7 per cent, at 5,650.1 points.
* The broader All Ordinaries index was up 38.3 points, or 0.68 per cent, at 5,706.3 points.
* The March SPI200 futures contract was up 28 points, or 0.5 per cent, at 5,594 points, with 27,769 contracts traded.
* National turnover was 3.1 billion securities traded, worth $5.98 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 75.73 US cents, from 75.70 from Monday
* 85.495 Japanese yen, from 85.80
* 70.42 euro cents, from 70.44 cents
* 60.55 British pence, from 60.92 pence
* 104.74 New Zealand cents, from 105.12 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,216.00 per fine ounce, down 50 US cents from $US1,216.50 on Monday
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25 per cent March 2019, 1.8355pct, down from 1.8756pct Monday
* CGS 4.25pct April 2026, 2.6382pct, down from 2.702pct
SYDNEY FUTURES EXCHANGE prices:
* March 2017 10-year bond futures contract at 97.275 (implying a yield of 2.725pct), up from 97.210 (2.790pct) on Monday
* March 2017 3-year bond futures contract at 98.00 (2.00pct), up from 97.96 (2.04pct) on Monday
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
