Stocks eke out positive close despite resources drag

The local market has closed marginally in the black, despite heavily weighing resources stocks.

The Australian sharemarket has eked out a modest gain at the close despite a heavy drag from resources stocks through the session.

At the closing bell, the benchmark S&P/ASX 200 index had risen 6.5 points, or 0.12 per cent, to 5,412.4, while the broader All Ordinaries index rallied 6.5 points, or 0.12 per cent, to 5,500.2.

The local market traded in the red for much of the afternoon, but finished as it started with gains after the banks received a steady bid.

A lack of data had investors cautious, with the focus switching to testimony from US Federal Reserve chair Janet Yellen overnight after Tuesday morning’s US presidential debate.

“In Australia, stronger US stock prices were offset somewhat by weaker oil and gold,” CMC Markets chief market strategist Michael McCarthy added.

“These commodity moves speak directly to the most over-traded sectors on the Australian market, and … see an otherwise positive day stained with red.”

Weakness was seen across the board in materials and energy as base metals ended mixed in offshore trade and crude oil gave up recent gains.

Santos was the biggest drag, slumping 3.1 per cent at $3.41, while Woodside lost 0.7 per cent to $26.52 and Origin Energy skidded 3.7 per cent to $4.99.

Origin’s key rival in the consumer-facing energy retail space, AGL, represented a direct contrast in fortunes, leaping 5.7 per cent as it announced plans for higher dividends and a near $600 million share buyback.

The gains came as the group also received a first strike on its remuneration report, with 37 per cent of the vote cast against a pay structure that allowed chief executive Andy Vesey to take home $6.9 million last year.

In materials, BHP Billiton slid 0.5 per cent to $21.39, Rio Tinto inched down less than 0.1 per cent to $50.00 and Fortescue bucked the trend to advance 0.8 per cent to $4.92.

The gold sector saw red after the precious metal endured its worst day in a month, with Newcrest off 2.7 per cent and Regis Resources retreating 0.8 per cent.

In finance, the big four banks largely rebounded from yesterday’s heavy losses, although by the end of the day there was a wide gap in performance.

ANZ shone in gaining 0.7 per cent, CBA and NAB both edged marginally higher, while Westpac lost 0.1 per cent.

Among other blue chips, Telstra weakened 0.2 per cent to $5.10, while Qantas backtracked 1 per cent to $3.14.

Meanwhile, the Australian dollar surged to US76.8c during morning trade and held there for the remainder of the local session as a risk-on approach was stirred by rising confidence in Hillary Clinton winning the US election.