SYDNEY: The Australian sharemarket gained ground during the morning session as bargain hunters moved in to seek opportunities on the recently “underperforming” bourse.
At 12.05pm (AEDT), the benchmark S&P/ASX200 index had lifted 21.5 points, or 0.42 per cent, to 5120.7 points, while the broader All Ordinaries added 21 points, or 0.41 per cent, to 5178.7 points.
The benchmark had opened a slight 0.09 per cent stronger after falls in European stocks and a mixed performance on Wall Street.
Banks led the improvement, with three of the big four up at midday to largely reverse yesterday’s losses.
IG market strategist Evan Lucas said the benchmark had been strongly underperforming recently, “notably against the Nikkei and Eurostoxx”.
The market was also buoyed as the latest update to the Westpac-Melbourne Institute consumer survey showed the Christmas spending outlook had a hit a seven-year high. Meanwhile, a twice-yearly survey of 521 of Australia’s company directors founds a lift in sentiment to a two-year high following Malcolm Turnbull’s rise to the prime ministership.
In equities news, DuluxGroup unveiled a modest lift in full-year profit while Computershare announced the resignation of chairman Chris Morris.
Financial stocks were 0.8 per cent higher, despite Westpac suffering heavy falls as it traded ex-dividend.
Commonwealth Bank lifted 1.97 per cent to $76.23 while ANZ shares added 3.13 per cent to $26.34.
Westpac was down 1.49 per cent at $30.44 while National Australia Bank rallied 1.18 per cent to $28.30.
Energy stocks were the biggest improver, up 1.35 per cent after oil prices improved overnight.
Oil Search added 0.38 per cent to $7.90 but Woodside dipped 0.2 per cent to $29.34.
Consumer staples had improved 0.65 per cent.
Woolworths added 0.71 per cent to $24.05 and Wesfarmers rose 0.75 per cent to $38.80.
Materials weighed most heavily, giving up 1.12 per cent.
BHP Billiton shed 2.5 per cent to $21.03 while Rio Tinto was off 0.18 per cent to $49.30. Fortescue was up 3.04 per cent to $2.37 after it announced it would accelerate its debt repayments by running a tender to buy back $US750 million of corporate bonds.
Meanwhile, Qantas ticked up 0.96 per cent to $3.695 while Telstra added 0.76 per cent to $5.28.
