Stocks lift for sixth session

The local market has extended on July’s gains, to close at a one-year peak.

The Australian sharemarket has secured a sixth consecutive session of gains, delivering its second-best run for the year and extending on the advances seen through a noteworthy July.

At the closing bell, the benchmark S&P/ASX 200 index climbed 25 points, or 0.45 per cent, to 5,587.4, while the broader All Ordinaries index lifted 26.1 points, or 0.46 per cent, to 5,670.1.

The moves drive the benchmark to a one-year peak and come on the back of a 6 per cent surge through July that was remarkable for its lack of down days – just four.

Optimism was at its peak in the resources sector on Monday after commodity prices largely rose on Friday night after the US dollar tanked.

The market did, however, pare gains late in the day as traders turned cautious on mixed manufacturing data out of China and ahead of key events later in the week.

“Important local and regional data and an announcement around potential Japanese fiscal stimulus gives investors plenty to worry about this week,” CMC Markets chief market strategist Michael McCarthy said.

“Caution is expected from Australian investors ahead of local building approvals tomorrow morning and a line ball interest rate call from the RBA tomorrow.”

Analysts are swaying toward the prospect of a rate cut from the Reserve Bank tomorrow, although futures markets are only pricing in a 65 per cent chance, which means the market could gyrate in the aftermath.

Ahead of the monetary policy update the big banks struggled for direction, with ANZ in the red, Westpac flat and Commonwealth Bank and NAB rising more than half a per cent.

In contrast the big miners were ploughing forward, with BHP Billiton climbing 0.77 per cent to $19.67 and Rio Tinto adding 0.28 per cent to $49.70.

Iron ore miner Fortescue rebounded 0.9 per cent to $4.47 despite the price of its key commodity edging lower.

In energy, Santos surged 2.3 per cent to $4.49 and Woodside jumped 1.9 per cent to $27.04 as crude prices bounced off three-month lows and shorts looked to hedge their bets.

Petrol retail Caltex shot up 2.8 per cent to $34.10 as it was revealed margins in the local sector were at their highest level on record.

Elsewhere, Fairfax weakened 1.9 per cent to $1.03 after announcing impairment charges worth almost $1 billion, Tabcorp slipped 0.41 per cent to $4.87 as it detailed a $115 million takeover of INTECQ, Iluka climbed 1.3 per cent to $7.11 after making a UK acquisition and ASX Ltd edged up 0.24 per cent to $49.82 after appointing a new chief executive.

Among blue chips, Telstra eased 0.69 per cent to $5.73 and Qantas lifted 0.32 per cent to $3.17.

Meanwhile, the Australian dollar closed the local session at US76c, barely budging from its opening price.