Record CBA profit lifts market

THE Australian share market has gained ground as the Commonwealth Bank’s record profit was well received and the Australian dollar fell sharply amid political tension and a weaker iron ore price.

The benchmark ASX 200 index rose 21.9 points (0.4 per cent) to 5765.7 points as the heavyweight banking and mining sectors gained ground.

The All Ordinaries index fell 20.7 points to 5816.4.

CBA gained 46c (0.6 per cent) to $81.11 as it reported a 7.6 per cent increase in fullyear net profit to $9.93 billion, while its three main rivals all posted slightly stronger gains.

CMC Markets chief market analyst Ric Spooner said the gains came despite falls on Asian markets amid increasing tension between the US and North Korea.

“For Australia, we’ve been helped by the CBA result, which was a relief,” Mr Spooner said.

“It was broadly in line with expectations but against the background of weaker markets in recent times.”

He said the share market also benefited from the dollar’s fall, which came as traders moved towards safe-haven assets such as the Japanese yen.

The Aussie dropped to a three-week low of US78.55c, before a late slight recovery.

Miners were an area of strength, with BHP adding 11c to $26.21 and Rio Tinto climbing 37c to $66.42.

Gold stocks rose, with Newcrest Mining up 29c to 20.62.