ASX gains despite mining, energy losses

The property and telco sectors were Tuesday’s biggest gainers, both rising more than 1.5 per cent.

The Australian share market has risen modestly for its second day of gains despite losses in the mining and energy sectors, with traders apparently treading cautiously ahead of an important domestic inflation readout.

The benchmark S&P/ASX200 index closed Tuesday up 19.2 points, or 0.28 per cent, to 6798.6, while broader All Ordinaries finished up 15.3 points, or 0.22 per cent, to 6993.7.

IG Markets analyst Hebe Chen said that the gains came amid optimism about the US Federal Reserve pivoting away from aggressive rate hikes in December – but she noted that in Hong Kong, the benchmark Hang Seng index on Monday plunged 6.4 per cent for its worst day of trading in more than a decade.

“The market’s pretty concerned (there) about the new leadership from China,” she said.

Domestically, Treasurer Jim Chalmers will outline his first budget on Tuesday night, and then on Wednesday the Australian Bureau of Statistics will release Consumer Price Index figures for the third quarter

There was some risk that inflation might surprise to the upside, Ms Chen told AAP. An annual inflation rate above around seven per cent would increase pressure on the Reserve Bank to resume more aggressive, 50 basis point rate hikes, she said. “So there’s a risk there.”

Every sector was up except for energy and mining, which Ms Chen attributed to a drop in oil prices and concerns about China’s economy.

Fortescue Metals dropped 3.0 per cent to $16.26 while BHP and Rio Tinto both fell 1.4 per cent, to $38.50 and $91.32, respectively.

Petrol firm Ampol, plumbing supply company Reliance Worldwide and technical service provider Mader Group all suffered double-digit losses on third-quarter updates the market found disappointing.

Reliance fell 13.4 per cent to a two-year low $3.11, Ampol dropped 12.6 per cent to a one-year low of $3.93 and Mader dropped 10.8 per cent to $3.05.

Coalminers also suffered a lacklustre day, their first in a while.

Whitehaven dropped 4.5 per cent to $10.36 ahead of its annual general meeting, while New Hope fell 6.3 per cent to $6.66 and Yancoal retreated 3.1 per cent to $5.72.

All of the big banks were up, with NAB adding 1.0 per cent to a five-month high of $31.95, CBA climbing 1.3 per cent to a two-month high of $101.78, ANZ rising 0.4 per cent to $25.70 and Westpac up 0.1 per cent to $23.90.

The Australian dollar meanwhile was buying 63.25 US cents, from 63.41 US cents at Monday’s close.

ON THE ASX:

* The benchmark S&P/ASX200 index on Tuesday gained 19.2 points to 6798.6, a gain of 0.28 per cent.

* The broader All Ordinaries advanced 15.3 points, or 0.22 per cent, to 6993.7.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 63.25 US cents, from 62.57 US cents at Monday’s close

* 94.18 Japanese yen, from 94.28 yen

* 64.08 Euro cents, from 64.22 Euro cents

* 56.07 British pence, from 55.64 pence

* 110.81 NZ cents, from 110.37 NZ cents.