Mega miner helps push share market into the green
The Australian share market gained for a second session, led by a strong performance from mega-miner BHP, which helped offset weaker performances elsewhere.
The S&P/ASX200 rose 21.8 points, or 0.24 per cent, to 8,958.9 points on Tuesday, while the broader All Ordinaries index rose 18.7 points, or 0.2 per cent, to 9,182.5 points.
“With US markets closed overnight for President’s Day and many Asian markets closed for Lunar New Year, local earnings came to the fore and BHP easily stole the show,” said IG market analyst Tony Sycamore.
“BHP delivered a blockbuster result in the first half, sending its share price up more than 7.5 per cent to a record high of $54.20 before falling 4.7 per cent to $52.74.”
This move added another $11 billion to the miner’s market value, bringing its value to $267 billion.
Mining giant BHP helped lift the Australian stock market. (Susie Dodds/AAP PHOTOS)
Only four of 11 domestic sectors ended the day higher, driven by a 1.3 per cent rise in raw materials, largely thanks to BHP, as gold miners pulled back and other sub-sectors were mixed.
Gold itself fell to US$4,898 (A6,937) per ounce as the US dollar strengthened and risk appetite put pressure on the safe haven.
The heavyweight financial sector traded just below flat, with Westpac gaining 0.3 per cent and the remaining four major rivals lagging behind.
NAB shares fell 0.4 percent ahead of first-quarter results on Wednesday.
Energy stocks fell 0.4 percent and a similar move occurred in oil prices ahead of new US-Iran talks on its nuclear program.
Elsewhere in the segment, coal miners traded lower and uranium stocks were mixed.
Consumer discretionary shares had a positive day, rising 0.5 per cent, helped by JB Hi-Fi after its share price rose by nearly a fifth in two sessions since a 7.4 per cent increase in sales was reported in the last half.
In other earnings news, Seek fell more than three percent after reporting a $178 million loss, partly due to a loss in the value of its shares in Chinese employment platform Zhaopin.
Shares in Baby Bunting Group rose more than 8 percent after the maternity and baby products company announced a 44 percent increase in first-half underlying net profit compared to the previous period.
Lottery Corporation, Suncorp, NAB, Mirvac and GrainCorp will announce interim results on Wednesday.
The Australian dollar is buying 70.62 US cents, up from 70.88 US cents, at 5pm on Monday and fell slightly following the release of the Reserve Bank’s February meeting minutes.
“Although the board cited stronger activity, resilient consumer spending and persistent price pressures as reasons for tightening in February, the lack of a predetermined rate path kept the currency under pressure,” Zerocap analyst Emir Ibrahim said. he said.
“Attention now turns to this week’s wage price index and labor market data to confirm whether domestic strength is sufficient to sustain the RBA’s hawkish bias.”
ON ASX:
* The S&P/ASX200 rose 21.8 points, or 0.24 percent, to 8,958.9 points.
* More broadly, All Ordinaries rose 18.7 points, or 0.2 percent, to 9,182.5
CURRENCY DISPLAY:
One Australian dollar is traded as follows:
*70.62 US cents, down from 70.88 US cents at 5pm AEDT on Monday
* 108.01 JPY from 108.58 JPY
* 59.64 euro cents from 59.73 euro cents
* 51.90 British pence, from 51.96 British pence
* 117.06 New Zealand cents from 117.42 New Zealand cents
