Australian stocks edge higher in early trade

Stocks rose in early trade as the finance and telco sectors offset the impact of weaker commodity prices.

The Australian sharemarket is struggling for direction.

The Australian sharemarket has risen in early deals as strength in the financial and telecommunications sectors offset the impact of weaker commodity prices on resources stocks.

At 10.30am (AEST), the benchmark S & P/ASX 200 index lifted 16.3 points, or 0.3 per cent, to 5,531.4, while the broader All Ordinaries index climbed 14.1 points, or 0.25 per cent, to 5,626.6.

IG market analyst Angus Nicholson said the market would likely struggle for direction given another flat day of trade offshore.

“Markets continue to trade eerily quietly in the low-volume, low-volatility dog days of Northern Hemisphere summer,” he said.

“With stocks and bonds trading at historically high valuations, capital is increasingly pushing into the higher risk premium ends of the market.”

A positive early showing was seen by the telco sector after Vocus delivered a record profit, with its shares rising 2.9 per cent in response.

The news helped the broader industry, with market leader Telstra adding 0.55 per cent and TPG advancing 1.2 per cent.

In retail, Kogan edged up 0.6 per cent after comfortably outstripping its prospectus forecasts, while Rivers owner Specialty Fashion plunged 15.6 per cent despite narrowing its full year loss.

Earnings season was also seen drawing plenty of attention in the energy sector as Oil Search dipped 1.4 per cent despite matching market expectations for the half year, Caltex eased 1.5 per cent as a lift in profit was offset by news of a dip in revenues and Senex trading flat after trimming its loss.

Other big names in the sector were trading in the red after oil prices skidded 3 per cent overnight, with Santos off 1.1 per cent and Woodside yielding 0.8 per cent.

Elsewhere, shopping centre owner Scentre inched up 0.3 per cent after logging a 6.6 per cent rise in profit, software group Aconex tumbled 5 per cent as it reported a sharp slide in earnings, regional broadcaster Prime Media jumped 4 per cent as investors eyed better-than-expected underlying earnings over news the group swung to a loss and pathology giant Healthscope also tacked on 4 per cent after beating earnings expectations.

In finance, the big banks were all around half a per cent higher, with NAB’s 0.2 per cent rise trailing the sector and Westpac serving as the leader with a 0.8 per cent advance.

Meanwhile, the Australian dollar held above US76c after rising above that mark overnight as the US dollar lost momentum.