High five as confidence returns

THE share market closed higher for a fifth straight session yesterday as positive offshore leads contributed to gains for miners and banks.

The S&P/ASX200 rose 0.24 per cent to 6056.9 points, equalling a run of five straight gains posted in early January.

CMC Markets chief market strategist Michael McCarthy said investors were buying back into a positive global outlook after a busy period of financial results from local companies.

“We are getting a more even approach to trading and leads from US and European shares are being reflected in our market,” Mr McCarthy said.

“It’s a positive outlook for Australian investors, there is a clear sign that confidence is on the rise.”

The financial sector lost some of its early strength in afternoon trade, but the big four lenders were still higher, led by ANZ’s gain of 0.9 per cent.

Higher commodity prices supported the miners, with BHP Billiton up 0.8 per cent, South32 ahead 0.9 per cent, and BlueScope Steel 2.8 per cent stronger.

Rio Tinto climbed 1.3 per cent following its $345 million deal to sell European aluminium assets including an Icelandic smelter.

Fruit and vegetable grower Costa Group jumped 10 per cent as it half-year profit lifted 15 per cent and the company upgraded its annual profit growth to 25 per cent.

The telco sector was the worst performer, and Telstra dropped 0.9 per cent. AAP