Aussie stocks lift off Brexit-inspired lows

The local market has pared its losses from Friday’s plunge, but some stocks are still hurting.

The Australian sharemarket has pared some of its losses from Friday’s ‘Brexit’-inspired plunge, although banks and UK-exposed stocks continued to feel some pain.

At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was 24 points, or 0.47 per cent, higher to 5137.2, while the broader All Ordinaries index had lifted 23.4 points, or 0.45 per cent, to 5216.2.

The gains, driven by the big miners, only partially offset Friday’s 3.2 per cent loss, which saw the worst trading in nine months driven by the surprise vote for the UK to leave the European Union.

“The fact we seeing buying in select stocks in the UK and today in Australia suggest most in the market feel we are seeing a short-term shock than something more protracted and sinister,” IG chief market strategist Chris Weston said.

Despite commodity prices being hit hard on Friday, BHP Billiton closed up 3.1 per cent to $18.08 while Rio Tinto lifted 2.9 per cent to $44.07, with Brent crude off 1 per cent in Asian trade and gold lifted again following strong gains on Friday.

The materials sector was up 2 per cent overall with Fortescue Metals the best performer, lifting 7.95 per cent to $3.53 despite iron ore being off 0.6 per cent ahead of the session. Newcrest was up 2.72 per cent to $24.19 on the gold price rise.

But financials were down with the big banks mixed. ANZ lost 0.73 per cent to $23.27 while NAB dipped 0.41 per cent to $24.51. CBA, though, added 0.32 per cent to $72.80, and Westpac ticked up 0.14 per cent to $28.38.

The financial sector closed down 0.24 per cent with Macquarie Bank a huge weight — slipping 5.9 per cent to $67, to post its worst two-day loss (13 per cent) since the GFC. Morgan Stanley analysts said the UK accounted for about 10 per cent of the bank’s revenue. Similarly UK-exposed financial services firms BT Investments and Henderson Group slumped 15.88 per cent and 10.22 per cent respectively.

Providing some counterbalance were property stocks, with GPT Group 3.92 per cent higher to $6.06 and Stockland up 4.07 per cent to $4.86.

Energy stocks, meanwhile, were flat on the oil price dip. Woodside Petroleum added 0.31 per cent to $25.85 while Santos fell 0.43 per cent to $4.66.

Elsewhere, the big two supermarkets diverged, with Woolworths 0.58 per cent higher to $20.68 but Wesfarmers — which recently bought into the UK hardware market — down 0.13 per cent to $39.21.

And Telstra benefited from a global search for yield, the telco closing 2.24 per cent higher to $5.47. Similarly, Transurban was up 2.67 per cent to $11.91 while CSL had lifted 1.94 per cent to $108.82.

The Australian dollar, meanwhile, traded steadily around the US74c mark — up from US73.61c on Friday.

Around the region, bourses were generally higher although Hong Kong’s Hang Seng was slightly in the red just prior to the Australian close.

Looking ahead, the Housing Industry Association publishes its May update for new homes sales tomorrow.