Big banks, healthcare keep bourse upbeat

THE Australian share market closed modestly higher yesterday as gains by major banks, healthcare companies and miners offset weakness in other sectors.

The benchmark ASX 200 rose 9.6 points, or 0.2 per cent, to 6013.6 points, while the broader All Ordinaries index gained 8.1 points, or 0.1 per cent, to 6121.7 points.

Patersons Securities economist Tony Farnham said bank stock dividends were still an attraction for investors “even with all the background noise of the royal commission”.

A weaker Australian dollar had helped drive companies with offshore earnings higher, in particular BHP Billiton and healthcare heavyweights CSL and Cochlear, he said.

Among the Big Four banks, the Commonwealth Bank led gains, adding 74c, or 1.1 per cent, to $ 70.35.

National Australia Bank lifted 22c, or 0.8 per cent, to $ 27.03, Westpac rose 14c, or 0.5 per cent, to $28.41 and ANZ slipped 1c to $ 27.72.

BHP Billiton was up 0.5 per cent at $32.28, while Rio Tinto dipped 0.1 per cent to $83.00.

CSL led the healthcare sector, up 1.1 per cent, to $185.14, and Cochlear advanced 0.5 per cent, to $195.17.

Telcos were weaker as Telstra dropped 1.1 per cent, to $2.81, and TPG Telecom shed 3 per cent, to $5.42.

In retail, Myer was steady at 45c as it and rival department store chain David Jones fired the starters’ guns early on their mid-year stocktake sales.

Grocery supplier Metcash came under pressure for a second straight day after Morning star said in a report the group’s shares were still overvalued. Shares in Metcash were down 2c, or 0.7 per cent, at $3.01.

Among the better performers was Retail Food Group. Its shares rose 7.5c, or 9.7 per cent, to 84.5c after the company announced managing director Andre Nell was leaving and Richard Hinson had been appointed chief executive.