Stocks tick higher on BHP boost

A strong lift in BHP shares and a Wall Street tailwind helped push the bourse to its fifth-straight positive close.

A pedestrian is reflected in the window of the Australian Securities Exchange (ASX) showing stocks gains during opening trading in Sydney on November 10, 2016. Australian stocks surged 2.85 percent at the open on the back of a rally in commodities with investors betting US president-elect Donald Trump will pursue business-friendly policies. / AFP PHOTO / PETER PARKS

A strong lift in BHP shares led the local market to finish the session slightly higher in what was the fifth straight day of gains.

At the close of trade, the benchmark S&P/ASX200 had lifted 10.494 points, or 0.18 per cent, to 5840.801 points. The broader All Ordinaries index had risen 12.584 points, or 0.21 per cent, to 5925.898 points.

Tribeca deputy portfolio manager Jun Bei Liu said it was a reasonably good day for equity markets.

“The overall market was boosted by the confidence overnight from the US,” she said.

“Markets are hopeful that there might be some sort of outcome in terms of the trade war post the midterm election, given Trump’s tweet saying he’s expecting a great deal with China.”

“Earlier this week, reports suggested China may reduce its tariff on US imported cars which is a positive gesture indicating they will try to make a deal with the US.”

BHP spiked 2.79 per cent to $33.11 after it said about $US10.4 billion ($14.7bn) would be returned to shareholders following the sale of its US onshore oil and natural gas assets.

Rio Tinto strengthened 2.09 per cent to $78.00 while Fortescue rose 2.75 per cent to $4.11.

South32 dropped 0.83 per cent to $3.59 despite an upgrade by HSBC analysts.

In financials, NAB lifted 0.56 per cent to $25.35 after its full-year results were largely in line with expectations.

ANZ turned down 0.31 per cent to $25.85 while Commonwealth Bank sank 0.42 per cent to $68.94. Westpac lost 0.67 per cent to $26.67.

AMP shot up 6.88 per cent to $2.64 on speculation of takeover talks with Macquarie, and after the wealth manager defended the sale of its life insurance business yesterday.

Macquarie increased 0.57 per cent to $117.87.

Fund manager Perpetual slid 1.1 per cent to $34.27 after chief executive Rob Adams said that the fund management industry has been hit by the royal commission at the company’s annual general meeting.

Woolworths strengthened 0.95 per cent to $28.70 after the company announced a 1.9 per cent lift in first quarter sales for its grocery business, reflecting a challenging start as customers adjusted to the removal of single-use plastic bags.

Wesfarmers lost 1.87 per cent to $45.75 while Metcash added on 1.82 per cent to $2.80.

In Telcos, Telstra shed 1.95 per cent to $3.02 while Vocus tumbled 4.66 per cent to $3.27 on an analyst downgrade.

Meanwhile Star Entertainment grew 1.69 per cent to $4.82 on the back of a positive trading update at the company’s annual general meeting.

The energy sector was lower as oil prices remained under pressure.

Origin Energy backtracked 0.96 per cent to $7.22 while Santos gave back 1.2 per cent to $6.56. Woodside Petroleum was cut by 0.92 per cent to $34.53 while Oil Search slipped 0.13 per cent to $7.76.

Alumina improved 0.39 per cent to $2.56 despite a fall in the price of aluminium on slower growth in China’s manufacturing sector.

Elsewhere, Corporate Travel recovered somewhat from its 27 per cent dive on Wednesday, climbing 11.32 per cent to $22.32.

The Australian dollar was trading sharply higher at US71.28 cents in late trade after a larger-than-expected trade surplus for September put a rocket under the local currency.