Bargain hunters drive lift

THE share market has gained ground after bargain hunters helped drive a rebound in financial stocks.

The benchmark S&P/ ASX200 index rose 0.2 per cent to 5717.9 points as the heavyweight financial and mining sectors posted gains.

The market had been weaker in morning trade, but a recovery by the banks drove the market’s bounce, Patersons Securities economist Tony Farnham said.

“People seem to be sniffing around sectors like the banks for bargains after their recent sell down,” he said.

NAB gained 1.6 per cent, Westpac rose 1 per cent, ANZ lifted 0.8 per cent and CBA was 0.7 per cent higher.

The market lacked leads from overseas given US, UK and Chinese equities were closed for public holidays, but better-than-expected building approval numbers drove gains by building products companies, Mr Farnham said.

Shares in Boral rose nearly 1.5 per cent to $6.83 and CSR gained 0.5 per cent to $4.21.

The Australian dollar also gained ground to be trading at US74.43, up from US74.30¢ on Monday.

The energy, retail, healthcare and telecommunication sectors were weaker. Woodside Petroleum and Oil Search each fell 1 per cent, while in retail, Domino’s Pizza fell 1.4 per cent and Coles owner Wesfarmers was down 0.8 per cent.

Health insurer NIB was one of the worst performers, down nearly 5 per cent at a threemonth low of $5.14.

The fall came after the consumer watchdog launched Federal Court proceedings against the company, accusing NIB of failing to give customers notice of the removal of certain eye procedures from a program in which the insurer paid gap amounts to doctors.

The broader All Ordinaries index was up 8.3 points at 5756 points.