Australia’s share market is trading at a five-month high, led by a strong rally by the major banks and a subdued oil price.
The S&P/ASX200 jumped 114.7 points by midday, up 0.28 per cent, to 9,134.8, as the broader All Ordinaries gained 120.2 points, or 1.31 per cent, to 9,298.6.
The top-200 came within 66 points of its 9,202.9 record peak set in February, as the local bourse tracked a strong Wall Street on hopes the US and Iran would restart diplomatic efforts to solve the Persian Gulf conflict.
“Risk sentiment improved after President Trump called off planned attacks on Iran and said an outline agreement had been reached that included reopening the Strait of Hormuz,” Westpac economist Pat Bustamante said.
Australia’s IT sector outperformed the market with a 3.4 per cent charge, while health care stocks and financials advanced more than 1.6 per cent each.
Westpac, ANZ and NAB each gained two per cent or more, while CommBank traded 1.6 per cent higher to $180.80 after flagging a bookkeeping change that will result in a higher value of loan arrears reported in next week’s results.
Credit Corp was an exception in financials, dropping by more than a tenth despite a strong first-half financial report, as the company flagged tougher investment conditions.
The basic materials segment edged 0.6 per cent higher, as a slump in BHP shares dragged on an otherwise strong morning for miners, as copper crept higher but iron ore briefly dipped to a nearly two-year low of $US93 a tonne.
Gold stocks made a wary advance as the precious metal hovered near $US4,059 ($A5,787) an ounce.
The energy sector improved as oil prices held steady after their post-weekend drop, giving Woodside and Santos a chance to rebound from Monday’s sell-off, while refinery operators Ampol and Viva traded lower.
Real estate stocks surged 1.5 per cent after Charter Hall’s infrastructure REIT’s profit ballooned by more than a quarter to $90.5 million in the recent financial year.
Consumer discretionaries gained 0.3 per cent after household spending ticked up in June to beat forecasts, while staples was the only sector in the red by midday with a 0.2 per cent slump.
In company news, Bendigo Bank will appoint former HSBC UK executive Christopher Dean as chief customer officer, starting in September.
The Development Bank of Japan will buy Qantas’ 33 per cent minority stake in Jetstar Japan through a share buyback worth $115 million.
The Australian dollar is buying 70.13 US cents, down from 70.27 US cents on Monday at 5pm.
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