The Australian share market has closed modestly higher after the miners offset weakness from the energy players and a flat performance by the banks.
The benchmark S&P/ASX200 index rose 0.12 per cent to 6,077.1 points with the mining sector up by more than one per cent, while energy dropped 0.8 per cent and the financials were just 0.01 per cent higher.
Bell Direct equities analyst Julia Lee said stronger commodity prices, including a rise in base metals and gold overnight, bolstered the miners on Monday.
"It has been a strong run for the miners this year so far with South32 up 13 per cent, Fortescue up nine per cent and BHP Billiton and Rio Tinto both up eight per cent," Ms Lee said.
She said January typically had low trading volumes and a tendency to open strongly, only to have most of that strength subside by the afternoon.
"We are seeing the same today; we've had a strong open but the market is giving back almost all of those gains, as seen with energy which started higher but is now lower," she said.
"Contributing to the pullback is the fact that the US is on holidays tonight so people are closing their positions."
BHP Billiton rose 1.2 per cent to $31.90, Rio Tinto gained 1.5 per cent to $81.80, Fortescue Metals lifted 0.4 per cent to $5.31 and South32 advanced 2.6 per cent to $3.97.
Among the gold miners, Newcrest Mining jumped 2.9 per cent to $23.62, Evolution Mining rose 6.6 per cent to $2.73 and Resolute Mining lifted 5.9 per cent to $1.175.
Santos, Oil Search and Origin Energy were down between 1.3 per cent and 1.8 per cent, while Woodside Petroleum was steady.
The big four banks were mixed with ANZ and Commonwealth Bank up 0.5 per cent and 0.4 per cent respectively, while National Australia Bank and Westpac were down 0.2 per cent and 0.7 per cent respectively.
Vocus shares rose three cents to $3.24 after the telco divided its enterprise and wholesale divisions into separate operating segments, in a bid to restore shareholder value following its $1.46 billion full-year loss in 2016/17.
Meanwhile, the Australian dollar is back above 79 US cents after the greenback fell to a more-than-three-year low against the euro, which in turn pulled the US dollar index down.
The local currency was trading at 79.54 US cents at 1700 AEDT on Monday, from 78.79 on Friday.
ON THE ASX:
* The benchmark S&P/ASX200 closed up seven points, or 0.12 per cent, at 6,077.1 points
* The broader All Ordinaries index was up 10.9 points, or 0.18 per cent, at 6,187.7 points
* The SPI200 futures contract was up 10 points, or 0.17 per cent, at 6,028 points.
* National turnover was 5.1 billion securities traded worth $4.6 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 79.54 US cents, from 78.79 on Friday
* 88.06 Japanese yen, from 87.65 yen
* 65.07 euro cents, from 65.42 euro cents
* 57.86 British pence, from 58.17 pence
* 109.36 NZ cents, from 108.69 cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,343.61 per fine ounce, from $US1,338.119 per fine ounce on Friday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 4.50 per cent April 2020, 2.0432pct, from 2.026pct
* CGS 4.75pct April 2027, 2.7182pct, from 2.6995pct
Sydney Futures Exchange prices:
* March 2018 10-year bond futures contract at 97.230 (implying a yield of 2.770pct), from 97.245 (implying a yield of 2.755pct) on Friday
* March 2018 3-year bond futures contract at 97.810 (2.190pct), from 97.830 (2.170pct).
(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)
The U.S. stock market was closed for Martin Luther King Day.
Source: Netwealth Morning Business Roundup
Breakfast Scones washed down with Pineapple Citrus Juice this morning.
Happy trading, play nicely and make informed decisions.
