Stocks inch higher, defy resources softness

The local market has edged higher, despite resources softness, as the big banks all gained.

The Australian sharemarket has eked out a modest gain, as strength in the financial and retail sectors outweighed a sharp swing in resources sector fortunes through the session.

At the closing bell, the benchmark S&P/ASX 200 index had rebounded 10.6 points, or 0.2 per cent, to 5,424.2, while the broader All Ordinaries index lifted 10.7 points, or 0.19 per cent, to 5,521.1.

Investors were drawn back to the banks amid a hunt for yield, with the big four all ending comfortably in the black.

The leader was Westpac through a 1.6 per cent surge, while the Commonwealth Bank shrugged off recent negative sentiment tied to a downgrade from Morgan Stanley last week by advancing 1.1 per cent.

Elsewhere, ANZ gained 0.5 per cent and NAB tacked on 0.4 per cent.

A similarly positive story was told in the retail space despite official GDP numbers showing a slowdown in personal consumption expenditure.

The broad GDP figures highlighted robust annual growth of 3.3 per cent for the 12 months to June 30 - a four-year peak, although the quarter-on-quarter expansion was softer against March’s strong showing.

Supermarket giant Woolworths ended flat in response, but Coles owner Wesfarmers leapt 1.1 per cent and department store operator Myer added 0.8 per cent.

The energy sector lost momentum after a disappointing drilling update from Beach Energy in relation to a joint venture that is majority-owned by Santos.

The latter felt the brunt of the punishment from investors, tumbling 5 per cent by the close after opening flat.

Origin bucked the trend to rise 0.6 per cent, while Woodside eased 0.8 per cent.

The big miners also faded through the day, largely due to iron ore futures turning down 3.4 per cent.

BHP Billiton dipped 0.3 per cent to $20.50, Rio Tinto lost 0.8 per cent to $48.16 and Fortescue slumped 3.5 per cent to $4.99.

Gold miners kept the materials sector afloat after a strong 2 per cent advance in the price of the precious metal during offshore deals, with Newcrest surging 3.5 per cent and Regis Resources bounding 5.5 per cent.

Among blue chips, Telstra recovered 0.4 per cent to $5.14, while Qantas ended steady at $3.39.

Meanwhile, the Australian dollar held around US76.75c, barely budging on the release of growth numbers that broadly met market expectations.