PERTH: The Australian sharemarket has defied soggy commodity market momentum to rally at the start of trade,
At the 10.15am (AEDT) official market open, the benchmark S&P/ASX200 index was up 32.7 points, or 0.63 per cent, at 5226.4, while the broader All Ordinaries index gained 31 points, or 0.59 per cent, at 5276.2.
The banking stocks rallied after global ratings agency Fitch said regulatory intervention this year had improved mortgage underwriting in the local market, which should ultimately prove positive for asset quality
“The improved underwriting is largely the result of regulatory intervention in 2015, which we believe is also likely to result in stronger competition for owner-occupier loans,” Fitch said.
ANZ lifted 0.77 per cent to $27.65 while CBA added 1.23 per cent to $79.97.
NAB gained 1.25 per cent to $29.94 and Wesptac rallied 0.91 per cent to $31.99.
Meanwhile, IG market analyst Chris Weston said commodities will be in focus after further pressure on metals markets overnight, while all eyes will be watching official capital expenditure data mid-morning.
“Commodities have definitely been in the headlines lately, but it’s been awhile since there have been so many bearish articles on China, the commodity super cycle and potential cuts to dividends,” Mr Weston said.
Dual-listed miner BHP Billiton tumbled 2.6 per cent in London trade, while rival Rio Tinto gave back 1 per cent as a rebound in commodities was curtailed by a stronger US dollar.
Copper slid 1.4 per cent, while zinc backtracked 0.3 per cent through volatile trade on the London Metal Exchange. Key Australian export iron ore held at a 10-year low of $US43.40 a tonne in the spot market.
