PERTH: The Australian sharemarket has been pulled higher by a bounce in resources stocks, but was held back from further gains by wavering financial stocks in the wake of the government’s Murray inquiry response.
Financial stocks continued yesterday’s downward momentum in early trade as investors digested the government’s response to the Murray financial services inquiry, which backed calls for tougher capital requirements on the banks, leading the bourse lower for most of the day.
But the big banks managed to pare their losses by the end of the day, leaving the market marginally higher.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 was up 12.7 points, or 0.24 per cent, to 5248.3, while the broader All Ordinaries rose 14.9 points, or 0.28 per cent, to 5286.5.
Resources stocks were the easy winner on the market, as a bounce in gold prices and better-than-expected BHP production figures boosted the sector.
BHP Billiton this morning said it will cut a further $US200 million of spending on its oil and gas business, but says full-year production guidance will remain unchanged. Iron ore output hit a record high in the three months to September 30.
BHP Billiton added 1 per cent to $24.23, while Rio Tinto lifted 1.23 per cent to $52.78.
The gold sector also performed well after the metal’s price rose for the first time in four sessions in offshore trade.
Kingsgate Consolidated lifted 0.69 per cent to 72.5c and Newcrest jumped 2.2 per cent to $14.42.
