Banks help push Australian share market higher

The Australian stock market closed higher for the second straight day, with the S&P/ASX200 breaching the key 6100-point mark.

The Australian share market finished in the green for the second straight day after strong leads from overseas overnight, particularly Wall St.

The S&P/ASX200 closed 0.81 per cent higher at 6112.6 — breaching the key resistance level of 6100 points — while the All Ordinaries Index rose 0.79 per cent to 6301, despite Australian Bureau of Statistics figures showing the nation’s trade surplus shrank in July.

“Share markets often lead economic recoveries so the current apparent disconnect is not that unusual,” AMP chief economist Shane Oliver said.

Bank stocks helped push the market higher. ANZ was up 1.77 per cent at $18.37, Commonwealth Bank firmed 0.84 per cent to $68.18, National Australia Bank appreciated 1.53 per cent to $17.89 and Westpac gained 1.62 per cent to $17.60.

Casino operator SkyCity Entertainment posted a full-year profit plunge but said it expected the rise in its online gambling customer numbers would continue, helping to offset the impact of closing its New Zealand and Adelaide casinos during lockdowns.

Shares in the company jumped more than 10 per cent in morning trade before finishing 7.36 per cent stronger at $2.48.

Shares in Bubs Australia dropped 4.9 per cent to 87 cents after it completed a share placement that raised $28.3 million (before costs) at a discounted 80 cents per share, saying its first priority related to manufacturing infant formula in China made from Australian goat milk.

Bubs Australia plans to make infant formula from goat milk.

Buy-now-pay-later company Afterpay lifted 1.56 per cent to $83.79 while smaller rival Zip Co inched 0.85 per cent higher to $7.12, recovering from yesterday’s losses driven by US payments giant PayPal announcing it would enter the space in coming months.

BHP traded ex-dividend and was a drag on the market, dropping 2.31 per cent to $37.61.

Fellow mining giant Rio Tinto eased 0.69 per cent to $98.31 while iron ore producer Fortescue added 0.67 per cent to $18.14.

Oil Search dropped 0.92 per cent to $3.22 after oil prices fell about 2 per cent overnight but gas-focused Woodside gained 0.89 per cent to $19.25.

Gold stocks were also lower as the precious metal’s price softened. Perseus Mining gave up 3.42 per cent to $1.41, Resolute Mining backtracked 1.32 per cent to $1.12 and Australia’s biggest gold miner Newcrest dipped 0.79 per cent to $31.30.

The Australian dollar was buying 73.06 US cents, 54.97 British pence and 61.90 Euro cents in afternoon trade.