The Australian share market has closed higher, led by mining and energy stocks, as investors took confidence from offshore markets ahead of the start of the local reporting season.
The benchmark S&P/ASX200 index finished up 0.31 per cent at 5,720.6 points.
ASR Wealth Advisers client adviser Gary Huxtable said resources stocks had a solid session, and there was broad-based buying across the board.
“It appears to be somewhat globally driven,” Mr Huxtable said.
“If you have a look at markets across Asia, they’re performing well apart from Japan, and US futures are up as well.”
Mr Huxtable said, however, that trading had drifted lower late in the afternoon, which suggested that investors were cautious about holding onto gains.
Investors are waiting for the release of the company earnings season, which starts on Tuesday with Seven West Media’s full-year results but gains momentum from mid-August.
Mr Huxtable said manufacturing data out of China on Monday had little impact on the Australian market.
China’s official manufacturing Purchasing Managers’ Index for the month of July came in at 51.4 points — just shy of expectations of 51.6 points but above the 50 point mark indicating expansion.
Energy stocks lifted as oil prices rose to an eight-week high, after a bigger-than-expected dip in US output tightened the market, and the threat of sanctions against oil-producing Venezuela re-emerged.
Origin Energy added six cents, or 0.9 per cent, to $6.92 as it reported a 40 per cent lift in full-year production and more than doubled revenue,
Woodside Petroleum gained 1.1 per cent to $29.17, and Santos improved 0.6 per cent to $3.39.
Among the major miners, BHP Billiton, Rio Tinto and Fortescue Metals all advanced in the wake of a firmer iron ore price.
The major banks – ANZ, Westpac, National Australia Bank and Commonwealth Bank – were softer, losing between 0.04 per cent and 0.2 per cent.
Hearing implant firm Cochlear eased $2.32, or 1.6 per cent, to $142.85 as the company announced its chief executive, Chris Smith, will retire in January and hand over the reins to chief operating officer Dig Howitt.
Wind farm operator Infigen Energy was up two per cent to 77 cents after announcing that the record low wind generation suffered in its fourth quarter – flagged in June – had pushed down quarterly revenue by 36 per cent.
Biotech Sirtex Medical nudged up one cent to $16.09.
Sirtex is facing two possible shareholder class actions over allegations that the company engaged in misleading and deceptive conduct in relation to missed sales forecasts for 2016/17 that sparked a share price plunge.
Meanwhile, the Australian dollar looks comfortable at near-two-year highs against its US counterpart.
The Australian dollar was trading at 79.84 US cents at 1630 AEST on Monday, up slightly from 79.80 US cents on Friday.
ON THE ASX:
* The benchmark S&P/ASX200 closed up 17.8 points, or 0.31 per cent, at 5,720.6 points
* The broader All Ordinaries index finished up 18.7 points, or 0.32 per cent, at 5,773.9 points.
* The September SPI200 futures contract was up 25 points, or 0.44 per cent, at 5,659 points.
* National turnover was 2.7 billion securities traded worth $5.2 billion.
CURRENCY SNAPSHOT AT 1700 AEST
One Australian dollar buys:
* 79.80 US cents, from 79.80 on Friday
* 88.30 Japanese yen, from 88.55 yen
* 68.01 euro cents, from 68.19 euro cents
* 60.88 British pence, from 60.98 pence
* 106.37 NZ cents, from 106.27 cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,267.84 per fine ounce, from $US1,259.09 per fine ounce on Friday.
BOND SNAPSHOT AT 1200 AEST:
* CGS 4.50 per cent April 2020, 1.8576pct, from 1.8769pct
* CGS 4.75pct April 2027, 2.6256pct, from 2.6326pct
Sydney Futures Exchange prices:
* August 2017 10-year bond futures contract at 97.320 (implying a yield of 2.690pct), from 97.315 (2.685pct) on Friday
* August 2017 3-year bond futures contract at 98.05 (1.95pct), from 98.03 (1.970pct)
(*Bond market closes taken at 1630 AEST previous local session; currency closes at 1700 AEST previous local session)
