The share market has posted a small gain as investors recuperated some of the losses from a Wall Street-led sell-off on Wednesday.
The market dropped 1.5 per cent and shed $26 billion on Wednesday – its biggest one day fall since November 9 – after US investors became nervous about the Trump administration’s ability to push healthcare and tax changes through Congress.
IG market analyst Evan Lucas said the sell-off was overdone.
“After everybody freaked out yesterday, there’s a bit of steadying today, a little bit of recuperating from the over-reaction yesterday,” he said.
The materials sector recovered after being sold off on Wednesday for no good reason, Mr Lucas said.
BHP Billiton rose 1.1 per cent, Rio Tinto was steady, South32 rose 3.8 per cent and Fortescue Metals dropped 0.2 per cent.
Energy stocks also lifted as the oil price improved during trading in Asia, with Woodside Petroleum improving 0.5 per cent and Santos firming 1.4 per cent.
Three of the big four banks eked out gains, and Westpac fell slightly.
Investors are now waiting for the vote on US President Donald Trump’s move to repeal Obamacare, his predecessor’s health care initiatives, on Thursday night (Australian time).
Its passage is seen as a portend for the Trump administration’s proposed corporate tax changes.
US Federal Reserve chair Janet Yellen is also delivering a speech on Thursday night.
Regional markets showed no obvious reaction to the London terror attack.
The Australian dollar was little changed at 76.63 US cents at 1700 AEDT.
Investment firm Washington H Soul Pattinson was one of the best share market performers, jumping 4.1 per cent to $17.41 as its net profit soared 56 per cent.
Australia’s largest maker of bricks and tiles, Brickworks, edged 0.1 per cent higher to $13.77 after reporting a 35 per cent jump in half year profit.
ON THE ASX:
* The benchmark S&P/ASX200 was up 23.5 points, or 0.41 per cent, at 5,708 points.
* The broader All Ordinaries index was up 22 points, or 0.38 per cent, at 5,754 points.
* The June SPI200 futures contract was up 39 points, or 0.69 per cent, at 5,707 points.
* National turnover was 2.7 billion securities traded worth $5.95 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 76.63 US cents, down from 76.60 on Wednesday
* 85.36 Japanese yen, down from 85.45 yen
* 71.02 euro cents, up from 70.92 cents
* 61.37 British pence, down from 61.42 pence
* 108.73 New Zealand cents, up from 108.88 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,245.90 per fine ounce, up 80 US cents from $US1,245.10 per fine ounce on Wednesday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25 per cent March 2019, 1.766pct, down from 1.778pct
* CGS 4.25pct April 2026, 2.688pct, down from 2.707pct
Sydney Futures Exchange prices:
*June 2017 10-year bond futures contract at 97.215 (implying a yield of 2.785pct), up from 97.205 (2.795pct) on Wednesday
* June 2017 3-year bond futures contract at 97.99 (2.01pct), up from 97.98 (2.02pct).
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
