SYDNEY: The Australian sharemarket has a spring in its step on the first day of the new financial year despite global worries about Greece.
On Wednesday at 1200 AEST, the benchmark S&P/ASX200 index was up 27 points, or 0.51 per cent, at 5,478.9 points.
The broader All Ordinaries index was up 28.2 points, or 0.52 per cent, at 5,480.6 points.
The September share price index futures contract was up 39 points, or 0.7 points, at 5,436 points, with 19,030 contracts traded.
Local investors have been happy to take a break from the recent sell-offs and add to a second day of gains.
The Greek debt crisis is not yet resolved, but hope remains of a resolution, with talks with eurozone finance ministers ongoing.
OptionsXPress analyst Ben LeBrun said local stocks were doing better than expected.
“It’s been a strong start in most sections of the market, with the banks and energy stocks enjoying some of the biggest gains,” Mr LeBrun said.
“Despite the negativity around Greece, we’re taking heart from Glenn Stevens that the fall-out in Australia would be minimal.”
Reserve Bank Governor Glenn Stevens has said Australia’s direct exposure to Greece was “minuscule” and its crisis was unlikely to have a material impact on the country unless there’s major upheaval in global markets.
Gains on the Australian market have been capped by falls in the iron ore price to below $US60 a tonne which has hurt miners.
A flood of economic data releases this week will influence the ASX, including building approvals on Wednesday and trade and retail sales later in the week indicating how small business has reacted to the budget tax cuts.
Approvals for the construction of new homes rose 2.4 per cent in May, which was better than market expectations of a 1.3 per cent rise.Among the major banks, ANZ was up 24 cents to $32.45, Westpac had added 24 cents to $32.39, Commonwealth Bank had gained 85 cents to $85.98, and National Australia Bank had improved 23 cents to $33.54.
In the resources sector, global miner BHP Billiton fell 49 cents to $26.56, Rio Tinto had shed 90 cents to $52.85, and Fortescue Metals had dumped eight cents to $1.83.
Woodside Petroleum’s shares were 44 cents higher at $34.66 after an announcement that its Browse project is a step closer, with design work starting on its floating liquefied natural gas technology.
