Australian share market recovery continues

THE Australian share market has continued its recovery from Friday’s rout, moving higher on the back of gains by key stocks and strong leads from Wall Street.

Trader David O'Day works on the floor of the New York Stock Exchange Thursday, Aug. 6, 2015. U.S. stocks edged modestly lower in early trading as investors look over the latest deal and earnings news. Sliding oil prices pulled stocks in energy companies lower. (AP Photo/Richard Drew)

THE Australian share market has continued its recovery from Friday’s rout, moving higher on the back of gains by key stocks and strong leads from Wall Street.

Patersons Securities research analyst Ishan Dan said Dow Jones’s positive lead and BHP Billiton’s near three per cent lift on open helped the ASX make early gains.

But, he said, the local reporting season would be the major driver for the market on Tuesday.

“Today is all about reporting season, with a number of companies coming out and a few surprises,” he said.

But, he added: “BHP and the banks are mainly driving the market early, that’s why we’re up around 30 points, but we probably won’t be up as much as we would have been had we not seen some of these profit downgrades”.

At 1018 AEST, BHP Billiton was up 75 cents at $26.75, while Rio Tinto had added $1.39 cents to $55.13 and Fortescue Metals was six cents higher at $1.975.

But shares in bionic ear maker Cochlear were more than 14 per cent, or $12.69, lower at $77.34 with its 56 per cent profit rise falling short of expectations.

And, Domino’s Pizza was 7.65 per cent, or $3.15, worse off at $38 despite beating its own full year profit guidance.

The big banks were mixed in early trade, with Commonwealth adding 31 cents to $82.45 and Westpac up two cents to $32.70. But National Australia Bank slipped 21 cents to $33.11 and ANZ fell three cents to $30.57.

Mr Dan said an expected capital raising by Commonwealth Bank on Wednesday could see more volatility on the ASX.

KEY FACTS

* At 1018 AEST, the benchmark S&P/ASX200 index was up 15.1 points, or 0.27 per cent, to 5,524.3 points.

* The broader All Ordinaries index was up 15.1 points, or 0.27 per cent, to 5,520 points.

* The September share price index futures contract was up 21 points at 5,466, with 9,304 contracts traded.

* At 1105 AEST, national turnover was 593 million securities worth $1.289 billion.