Australian share market closes higher as miners, energy producers rise

Losses in health and consumer stocks were offset by gains from miners and energy producers to send the benchmark higher on Tuesday.

The Australian share market edged higher on Tuesday as losses in health and consumer stocks were offset by gains from miners and energy producers.

The S & P/ASX200 rose 0.2 per cent to close at 6,856.9 points. The All Ords also climbed 0.2 per cent to 7,045.6 points.

Results on Wall St were mixed overnight. While the Dow Jones fell 0.6 per cent and the S & P slipped 0.2 per cent, the tech-heavy Nasdaq jumped 0.3 per cent.

On the local benchmark, six of the 11 industry sectors finished in the green, with material stocks the strongest performer, up 0.9 per cent.

Iron ore miners jumped after commodity futures rose one per cent on the Singapore Exchange’s November contract. Picture: AFP / Amy Coopes

Iron ore miners rose after the November futures on the Singapore Exchange climbed one per cent to $US113.85 per tonne.

Rio Tinto added 1.5 per cent to $113.47, BHP increased 0.6 per cent to $43.63, and Fortescue jumped 2.4 per cent to $21.30.

Following a rebound in global oil prices as Tel Aviv held off from an invasion of Gaza, energy stocks also climbed higher, up 0.4 per cent.

Brent crude is trading above $US90 a barrel, while West Texas Intermediate neared $US86 a barrel.

Ampol climbed 1.2 per cent to $31.75 and Viva Energy increased four per cent to $2.84.

Consumer staples were the weakest performer on the benchmark, dropping one per cent.

Supermarket giants Coles dropped 0.9 per cent to $15.10 and Woolworths lost 1.3 per cent to $36.35.

Consumer heavyweights Coles and Woolworths sank ahead of fresh inflation data, which will be released on Wednesday. Picture: NCA NewsWire / Josie Hayden

In company news, buy now pay later stock Zip Co surged 6.7 per cent to 32c a share after the firm announced revenue had risen 31.9 per cent to $204.4m.

Protective industrial equipment and medical gloves manufacturer Ansell dropped 1.2 per cent to $21.49 after its chief executive announced the demand and supply levels would likely retreat to pre-pandemic levels by next year.

Embattled airline Qantas announced that it had appointed Rachel Yangoyan as the new chief executive of its regional and charter arm, QantasLink.

Yangoyan replaces John Gissing, and joins an all-female line-up at the helm of its three airline brands, with Vanessa Hudson serving as Group CEO and Stephanie Tully at budget carrier Jetstar.

Rachel Yangoyan will replace John Gissing as the chief executive of Qantas Link. Picture: NCA NewsWire / James Gourley

KCM Trade chief market analyst Tim Waterer said there were many moving parts currently affecting financial markets, which were proving challenging for investors.

“From geopolitical events to bond market volatility that’s creating these uncertain trading conditions – conditions which are making gains of any significance hard to come by for equity markets,” Mr Waterer said.

Mr Waterer added that markets were closely watching fresh inflation data, to be released on Wednesday, to determine if the Reserve Bank would pursue any further monetary tightening.

“If we happen to see a particularly hot CPI print tomorrow – north of the 1.1 per cent rise forecast – this could sway expectations towards potential rate rise by the RBA before year end,” he said.

Ahead of the September quarter inflation print, Reserve Bank governor Michele Bullock will make her first prepared address at a business event in Sydney on Tuesday evening.

Originally published as Australian share market closes higher as miners, energy producers rise