SYDNEY: The Australian market opened slightly higher following gains on US and European markets after Greece made loan repayments to creditors and reopened its banks.
At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 gained 12.2 points, or 0.21 per cent, to 5,699.1, while the broader All Ordinaries index added 12.2 points, or 0.22 per cent, to 5,681.2.
CMC Markets chief market strategist Michael McCarthy said European optimism had driven local market gains, but falling commodity prices could curb investor enthusiasm.
“A stronger US dollar is casting a shadow, and resulting weakness in commodity prices may curtail any lift in sharemarkets,” Mr McCarthy said.
“Of particular concern to Australian investors is the hammering of the gold price to five-year lows. A stronger US dollar takes some of the blame, but market talk of a significant sell order at yesterday’s Asian open is also weighing on sentiment,” he said.
Materials lost 0.79 per cent as a sector. BHP sank 1.28 per cent to $26.65 and Rio Tinto shed 0.84 per cent to $53.42, while Fortescue bucked the trend, gaining 1.15 per cent to $1.77.
Financials firmed 0.41 per cent. ANZ gained 0.37 per cent to $32.97, Commonwealth Bank eked out a 0.17 per cent gain to $88.51, NAB added 0.85 per cent to $34.64 and Westpac lifted 0.72 per cent to $34.85.
Energy stocks added 0.26 per cent collectively. Woodside Petroleum advanced 0.35 per cent to $34.90 while Santos gave up 0.66 per cent to $7.49. Oil Search surged 2.16 per cent to $7.10 despite a 17 per cent plunge in its quarterly revenue, as low energy prices continued to weigh on its balance sheet.
