Big banks give market a bounce

THE Australian sharemarket closed higher yesterday as bargain hunters ignored a mixed lead from US markets.

The benchmark ASX 200 index finished up 38.5 points, or 0.7 per cent, at 5726.6 points, while the broader All Ordinaries index added 37.3 points, also 0.7 per cent, to 5775.3.

Phillip Capital senior client adviser Michael Heffernan said the market had bounced back from two days of losses as investors saw value in the big banks and stocks with a strong US presence, such as CSL and Cochlear.

“When I look at the top 20, it’s just a sea of green, except for Telstra, Westfield, Brambles and Scentre Group, which are only slightly down,” Mr Heffernan said.

“It’s a healthy feeling across the market.”

He said investors were awaiting Australian inflation data, due today, and the outcome of this week’s Federal Reserve meeting in the US.

The big four banks all gained ground, with the Commonwealth Bank leading the way, up 71c, or 0.9 per cent, to $84.28.

The big miners all posted solid gains, with BHP finding 16c to $24.56, Rio Tinto up 38c to $63 and Fortescue Metals 7c stronger at $5.06.

Copper and gold miner OZ Minerals was 11c weaker at $7.37 as it said it saw annual gold output at between 115,000-125,000 ounces.

In company news, online electronics retailer Kogan.com jumped 12c, or 5.9 per cent, to $2.17 after it released an upbeat fourth quarter trading update.

Beverages supplier CocaCola Amatil slumped 33c, or 3.9 per cent, to $8.23 on news that supermarket giant Woolworths will cut back on the range of CCA’s Mount Franklin water products on its shelves.