Broad based gains have driven the Australian share market higher with mining stocks leading the way, supported by a lift in iron ore prices and BHP Billiton’s return to profitability.
The benchmark S&P/ASX200 index closed up 0.4 per cent at 5,750.1 points as positive results from Oil Search, Sydney Airport and Amcor joined BHP Billiton’s to feed into a mildly upbeat market mood.
Shares in BHP closed ahead by 1.1 per cent at $25.98, after the global miner flagged the sale of its troubled US shale assets and trebled its final dividend on the back of a $US5.9 billion ($A7.4 billion) full year profit.
Rising commodity prices fed into a turnaround for BHP, which last year suffered a $US6.4 billion loss.
Iron ore peer Rio Tinto was up one per cent at $64.77 and Fortescue Metals, which reported a doubling in profit on Monday, gained 1.4 per cent to $5.93.
Citi Global Markets director equities sales Karen Jorritsma said all the top-end ASX companies delivered largely positive or as-expected results following a good lead from overnight markets.
US stocks closed mainly higher with the Dow and the S&P 500 inching ahead around 0.1 per cent amid ongoing geopolitical tensions.
“The headline companies have all delivered contrary to some of bearish assumptions out there,” Ms Jorritsma said.
BlueScope Steel, which free-fell on Monday – in line with its drop in forecast earnings – pulled itself off the mat to be 5.4 per cent higher at $11.62 at the close.
Ms Jorritsma said while there was “not a whole lot to move the needle” the overall earnings environment has been “pretty supportive.”
Three of the big four banks ended higher with ANZ the only one to slip, dropping 0.4 per cent.
Shares in Oil Search were up 3.3 per cent to $6.60 after a strong half-year profit increase – up more than fivefold to $US129 million – was complimented by a flagged upgrade in production guidance.
Energy peer Woodside Petroleum was flat, Origin Energy slightly lower and Santos took some momentum into late trade, finishing 2.1 per cent higher at $3.40.
Packaging giant Amcor more than doubled its annual profit to $US597 million ($A752 million), with its shares rising 12 cents to $16.12.
Sydney Airport was up 3.4 per cent at $7.08, after its annual profit took off by four per cent amid busier international traffic.
“A result that bodes well for Qantas, later in the season,” Ms Jorritsma said.
Coles owner Wesfarmers had a tough day at the office, down 2.9 per cent at $41.35, while competitor Woolworths – expected to report a lift in market share against its rival in its full-year results on Wednesday – was ahead 0.5 per cent at $27.06.
The Australian dollar was marginally higher against the US dollar after a choppy session in which US President Donald Trump outlined an increased presence for US forces in Afghanistan.
The Aussie was trading at 79.40 US cents at 1700 AEST, up from 79.20 US cents on Monday.
ON THE ASX:
* The benchmark S&P/ASX200 closed up 24.2 points, or 0.42 per cent, at 5,750.1 points
* The the broader All Ordinaries index was up 24.8 points, or 0.43 per cent, at 5,804.8 points.
* The September SPI200 futures contract was up 34 points, or 0.6 per cent, at 5,714 points.
* National turnover was 2.8 billion securities traded worth $5.9 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 79.40 US cents, from 79.20 US cents on Monday
* 86.86 Japanese yen, from 86.39 yen
* 67.34 euro cents, from 67.48 euro cents
* 61.68 British pence, from 61.62 pence
* 108.55 NZ cents, from 108.34 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,285.00 per fine ounce, down from $US1,286.99 per fine ounce on Monday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 4.50 per cent April 2020, 1.8927pct, from 1.8832pct on Monday
* CGS 4.75pct April 2027, 2.5931pct, from 2.5862pct
Sydney Futures Exchange prices:
* September 2017 10-year bond futures contract at 97.36 (implying a yield of 2.64pct), from 97.365 (2.635pct) on Monday
* September 2017 3-year bond futures contract at 98.02 (1.98pct) from 98.03 (1.97pct).
(*Bond market closes taken at 1630 AEST previous local session; currency closes taken at 1700 previous local session)
