PERTH: The Australian sharemarket rallied slightly on muted trade as selling from China-fearful materials investors partly offset broad-based gains led by three of the big banks.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index had lifted 23.4 points, or 0.46 per cent, to 5122.6, while the broader All Ordinaries added 23.3 points, or 0.45 per cent, to 5181.
The benchmark opened 0.09 per cent better and was 0.42 per cent stronger by noon as the market looked to offset recent relative underperformance compared to global peers. Banks led the gains, with three of the big four improving while Westpac retreated, trading ex-dividend.
But China’s three-pronged data release — retail sales, industrial production and fixed asset investment — slated for 4.30pm (AEDT) loomed large over the materials sector.
IG market analyst Angus Nicholson said there was little optimism ahead of the release, with China’s trade and inflation data already disappointing the market this week.
“Misses on the IP and FAI numbers are likely to impact commodities and commodity-related currencies,” he said. “The Aussie dollar and the ASX would both be impacted by a major miss.”
Still, Mr Nicholson said the banks’ “strong performance” today augured well for the market’s performance going forward.
In economic news, the latest update to the Westpac-Melbourne Institute consumer survey showed the Christmas spending outlook had a hit a seven-year high while a twice-yearly survey of members from the Australian Institute of Company Directors saw a lift in sentiment to a two-year high in the wake of Malcolm Turnbull’s rise to the prime ministership.
In equities news, DuluxGroup unveiled a modest lift in full-year profit, Fortescue said it would accelerate its debt repayments via $US750m in corporate bond purchases while Computershare announced the resignation of chairman Chris Morris. Elsewhere, the fallout from the Brazilian dam burst at the BHP Billiton and Vale-owned joint venture continued, with the number of confirmed deaths rising.
Financial stocks added 0.67 per cent despite Westpac suffering heavy falls as it traded ex-dividend.
