Market up on energy, banking optimism

THE Australian share market was lifted higher by banking and energy stocks on a choppy day’s trading as investors awaited the result of US midterm elections.

The benchmark S&P/ ASX200 index was up 21.7 points, or 0.37 per cent, at 5896.9 yesterday, while the broader All Ordinaries rose 0.39 per cent.

The Australian dollar strengthened to a one-month high as the US went to the polls, buying 72.59 US cents late yesterday.

The Democratic Party seized the legislative agenda from President Donald Trump by winning the House of Representatives.

Pepperstone head of research Chris Weston said investors will now be hoping for a less America-first approach to economic policy and a conventional stance on trade tariffs. A split Congress may also create more significant headaches for Mr Trump’s leadership.

Falling oil and metal prices resulted in mixed results for local commodity-related stocks but the energy sector reversed early losses and closed higher.

Woodside Petroleum climbed 0.2 per cent but Caltex, Santos, Origin, Oil Search and Beach Energy were all lower.

Mining shares ate away at Tuesday’s gains to drag on the market, with BHP down 0.5 per cent to $33.39 and BlueScope Steel slipped, losing 2.1 per cent to $14.01, while Rio Tinto was flat at $81.25.

Iluka Resources and gold miners Evolution, St Barbara and Northern Star were bright spots, each posting modest gains.

The banks pushed ahead, with Westpac climbing nearly 1 per cent to $27.18. NAB and ANZ were up 0.8 and 1.2 per cent respectively.

Health care, infotech and telco stocks were all in the black.