News from AAP

Bulls take lead as banks lift Aust stocks

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The Australian share market has closed higher, led by the financial sector, as investors start to feel bullish ahead of earnings reports from three of the big four Australian banks.

IG chief market strategist Chris Weston said market volatility at the moment was low, the US dollar was not a concern, iron ore and coal prices looked promising and overseas markets looked positive.

Mr Weston said there were opportunities in real estate, mining stocks and the financial sector.

“There’s no-one really too concerned about putting new money to work ahead of the bank earnings season,” Mr Weston said.

“It looks like the bulls are wrestling back some sort of control.”

Among the major banks, Commonwealth Bank gained 56 cents to $75.23, Westpac added 33 cents at $30.90, ANZ found 19 cents at $28.52, and National Australia Bank improved 17 cents to $27.80.

Three of the big four have upcoming full-year profit reports, beginning with National Australia Bank on Thursday.

In the resources sector, global miner BHP Billiton was 10 cents richer at $23.19, Rio Tinto ascended $1.25 to $52.48, and Fortescue Metals jumped 33 cents, or 6.46 per cent, to $5.44.

Among other stocks, Bega Cheese slumped $1.09, or 16.8 per cent, to $5.40 after the dairy processor told shareholders its joint venture with Blackmores to sell nutritional powders in China hadn’t met sales expectations.

Property developer Mirvac rose two cents to $2.09. Mirvac expects a strong year despite ongoing settlement delays from foreign buyers and the rate of defaults edging higher in the first quarter of 2016/17.

APN News & Media remained in a trading halt after announcing its $268.4 million purchase of the remaining 50 per cent of the Adshel outdoor ad business.

Theme park owner Ardent Leisure, which owns the Dreamworld park on Queensland’s Gold Coast, fell 20 cents, or 7.8 per cent, to $2.35 in late trade following a fatal accident on a ride at the venue on Tuesday afternoon.

KEY FACTS:

* At 1615 AEDT, the benchmark S&P/ASX 200 index was up 34.3 points, or 0.63 per cent, at 5,442.8 points.

* The broader All Ordinaries index was up 34.2 points, or 0.62 per cent, at 5,523.3 points.

* The December share price index futures contract was up 31 points at 5,423 points, with 26,889 contracts traded.

* National turnover was 2.3 billion securities traded, worth $5.1 billion.