SYDNEY: The Australian stocks looks set to persist a seven-day winning streak, opening higher on the back of a powerful energy zone.
At the 10.25am (AEDT) official market open, the benchmark S&P/ASX200 index was up 26.2 points, or 0.47 per cent, at 5,614.5 points, while the broader All Ordinaries index was up 24.8 points, or 0.45 per cent, at 5,576.4.
CMC chief market analyst Ric Spooner said investors were treated to a negative lead from Wall Street at the end of last week and news of a weaker than expected read on China’s manufacturing sector.
“However, sellers are likely to be kept in check this morning by mounting expectations that the Reserve Bank is going to embark on a new phase of rate cuts at its meeting tomorrow,” he said.
Kathmandu was the worst performer on the local market, shedding 22.99 per cent to $1.44, after warning of a hit to its first-half profit.
Energy stocks rallied in early trade, gaining 1.08 per cent as a sector.
Beach Energy surged 4.17 per cent to $1.00, while Oil Search lifted 2.19 per cent to $7.94.
Santos gained 1.9 per cent to $8.03 while Woodside Petroleum added 1.66 per cent to $34.85.
Materials gained 0.67 per cent as a sector.
BHP Billiton added 1.91 per cent to $29.82, while rival Rio Tinto was flat at $57.56.
Financial stocks were also stronger, lifting 0.31 per cent as a sector.
ANZ lifted 0.48 per cent to $33.16, while Commonwealth Bank rallied 0.31 per cent to $89.61.
National Australia Bank shed 0.25 per cent to $35.54 while Westpac lifted 0.15 per cent to $34.51.
Consumer staples rallied 0.18 per cent as a sector.
Woolworths added 0.53 per cent to $31.95, while Wesfarmers rose 0.32 per cent to $43.73.
Meanwhile, Telstra edged down 0.31 per cent to $6.48 and Qantas dropped 3.07 per cent to $2.53.
In local economic news on Monday, the Australian Industry Group’s performance of manufacturing (PMI) index showed improvement in January, though the sector still remained in contraction.
Meanwhile, the RP Data Core Logic Home Value Index and the TD Securities-Melbourne Institute’s inflation gauge both for January are also due out.
