Stocks climb on mining strength

The local market has defied a poor showing from the energy sector, as corporate results dominate.

The Australian sharemarket has ended a subdued week on a positive note, climbing as strength in the mining sector offset a poor energy sector performance after Santos disappointed with its interim results.

At the closing bell, the benchmark S&P/ASX 200 index gained 18.9 points, or 0.34 per cent, to 5,526.7, while the broader All Ordinaries index rose 18.1 points, or 0.32 per cent, to 5,625.4.

The gains weren’t quite enough to drive the local bourse to a gain over the week, with a 0.2 per cent decline recorded thanks to Thursday’s sell off.

“The net result [is] a continuation of the low trading ranges and broadly sideways movement that has characterised the overall market for nearly two weeks,” CMC Markets chief market analyst Ric Spooner said.

“Trading is being dominated by response to individual profit results. Results continue to be mixed but good enough to support the index around current levels.”

The mixed showings were best highlighted in the energy sector as Santos skidded 2 per cent to $4.85 and Woodside lifted 1.2 per cent to $28.90 after both detailed their half year results.

The two energy giants struggled with lower oil prices, although there was a sharp contrast in their results as the latter was still able to turn a profit, while Santos slumped to its first underlying loss in two decades.

The weak Santos response paled in comparison to the backlash against health insurer Medibank Private after a soft underbelly was revealed from within a strong headline profit lift.

The former government-owned vehicle slumped 4.7 per cent to $4.84, making it one of the worst performers for the session.

Whitehaven Coal endured an even more miserable day as its stock tanked 10.4 per cent to $1.90. The surprisingly sharp slide followed a near 4 per cent lift in the prior session as its results topped market forecasts.

Among other big names to report, IAG slipped 0.5 per cent per cent as it posted a 14 per cent slide in earnings and travel insurer Cover-More stumbled 4.7 per cent after reporting a sharp drop in profit.

It leaves the insurance sector as arguably the worst performed through reporting season, after QBE incurred the wrath of traders this week, losing 10 per cent. The move made it the second-weakest stock on the ASX200 this week, after G8 Education, which tumbled 15 per cent.

Another sector in the spotlight is healthcare, after CSL and Mesoblast each lost around 7 per cent on the week, with the former hurt by unflattering forward guidance.

There was plenty of good news in the materials space, however, as BHP rallied to a nine-month peak.

The mining giant added 2.1 per cent to $21.29 on Friday, while rival Rio Tinto jumped 1 per cent to $49.79 and iron ore miner Fortescue surged 3.8 per cent to $4.93.

In finance, the big four were largely in the black, with the exception a 0.2 per cent retreat by ANZ.

Among blue chips, Telstra rebounded 1.3 per cent to $5.48, while Qantas tacked on 0.3 per cent to $3.38.

Meanwhile, the Australian dollar slid to US76.4c, extending on losses seen during US trade.