Stocks end in the black, boosted by financials

A boost from financials, as NAB reported earnings figures, pushed the broader market over the line.

The Australian sharemarket has shaken off a weak start to end the first day of the week higher, boosted by a strong showing from financials after NAB released its latest quarterly numbers.

At the closing bell, the benchmark S&P/ASX 200 index tacked on 9.1 points, or 0.16 per cent, to 5,540, while the broader All Ordinaries index added 7.5 points, or 0.13 per cent, to 5,633.8.

CMC Markets chief market analyst Ric Spooner said the positive start to the week was a sign of investors struggling to find a reason to sell, rather than any significant buying appetite.

“The market is being supported by low interest rates and has not been given any reason to take defensive action in recent weeks,” he said.

“However, the outlook remains subdued for many industries. Investors appear reluctant to take valuation to new levels in advance of upcoming results and outlook statements.”

The exception to the positive showing was the materials sector, which was weighed by sharp falls in nickel and copper prices that followed soft Chinese data on Friday.

BHP Billiton weakened 2.5 per cent to $20.16, iron ore miner Fortescue tumbled 3.3 per cent to $4.44 and Rio Tinto slumped 3.4 per cent to $48.04, with the broader sector off 1.5 per cent.

Gold miner Newcrest skidded 4 per cent to $24.51 as earnings just missed forecasts.

In contrast, energy stocks was aided by a 2 per cent rise in crude prices and while sentiment was initially dampened by news of a $2 billion pre-tax write-off at Santos, traders gradually warmed to the sector.

Santos gained 1.1 per cent to $4.78 after earlier falling by 2 per cent, while rival Woodside edged down 0.4 per cent to $27.39.

Earnings season kicked back into gear as NAB’s quarterly profit eased 3 per cent.

Investors appeared unperturbed by the decline, sending the bank’s shares up 0.9 per cent to $27.20.

NAB outperformed its rivals, with gains of 0.2 to 0.5 per cent for the other members of the big four.

The spotlight also shone on retailer JB Hi-Fi, which rocketed 9.9 per cent to a record high of $30.09 after topping expectations and delivering its best same-store sales growth since the financial crisis.

Elsewhere, GPT Group lifted 1.1 per cent after raising full-year guidance, Ansell soared 17.7 per cent despite recording a 15 per cent drop in full-year profit and Aurizon nosedived 6 per cent as earnings were slashed by 88 per cent.

“As today’s major profit results highlight, this is a stock picker’s market,” Mr Spooner said of the contrasting moves post-results.

“While the ASX 200 index is up a creditable 4.4 per cent so far this year, this masks considerable variance in the performance of individual stocks and sectors.”

Among blue chips, Telstra rebounded 0.73 per cent at $5.49, while Qantas surged 4.1 per cent to $3.34.

Meanwhile, the Australian dollar edged higher, ending local trade at US76.6c.