CBA touches record high as market posts small advance
At the close, the benchmark S&P/ASX 200 Index was up 4.3 points at 5046.3, while the All Ordinaries edged 4.1 points higher to 5027.9.
Commonwealth Bank shares closed at a record high, and its big bank rivals also posted strong gains. That helped offset falls by energy stocks and metals companies.
Activity on the market was low, as investors waited for this week's central bank meeting in the US.
"Asia is not looking too flash at present," IG chief market strategist Chris Weston said. "The fact the ASX 200 has held up so well is positive, with financials and materials providing support."
Japan's market fell 3.32 per cent as investors worried about talk of a delay to an anticipated increase in the country's consumption tax. A debt review in China had hurt sentiment on its market.
Commonwealth Bank added 21¢ to $73.86, above its previous best closing price of $73.49 in May. Westpac gained 30¢ to $30.82, National Australia Bank gained 16¢ to $31.16 and ANZ was 23¢ higher at $29.64.
In the resource sector, BHP Billiton dropped 5¢ to $34.55, Rio Tinto shed 13¢ to $57.11 and Fortescue Metals added 4¢ to $3.65.
But goldminer Newcrest lost 26¢ to $12.15, while OZ Minerals shed 8¢ to $4.05 after warning it would take a hit of up to $240 million in its first-half results, largely due to lower copper and gold prices.
Energy companies also fell, with Woodside down 28¢ to $37.50, Santos down 17¢ to $13.64 and Oil Search 5¢ lower at $7.99.
The Australian dollar dipped as the slide on the Japanese market dented the popularity of higher-yielding currencies.
Late on Monday, the dollar was at US92.45¢, down from US92.54¢ on Friday.
This strengthened the yen against the greenback and the Australian dollar as the weak share prices of car exporters Toyota and Honda dented risk sentiment.
The dollar is expected to trade above US92¢ until Thursday morning, when the US Federal Reserve finishes its two-day policy meeting.
"It's unlikely to go above 93 and likewise it's going to find support in the lower 92 area," Easy Forex currency dealer Tony Darvall said.
Traders also continue to expect an August interest rate cut in Australia.
Frequently Asked Questions about this Article…
The S&P/ASX 200 edged higher by 4.3 points to 5046.3 as strength in the banking sector offset falls in energy and metals stocks. Market activity was low as investors awaited the US Federal Reserve's policy meeting, and analysts noted financials and materials were providing most of the support.
Commonwealth Bank shares closed at a record high of $73.86, up 21¢ from the prior close and beating its previous best of $73.49 in May. Broad gains across the big banks helped lift sentiment on the ASX.
Big bank rivals also posted gains: Westpac rose 30¢ to $30.82, National Australia Bank climbed 16¢ to $31.16, and ANZ was 23¢ higher at $29.64, contributing to the market's overall advance.
Resource moves included BHP Billiton down 5¢ to $34.55, Rio Tinto down 13¢ to $57.11, and Fortescue Metals up 4¢ to $3.65. Gold miner Newcrest lost 26¢ to $12.15. OZ Minerals fell 8¢ to $4.05 after warning it could take a hit of up to $240 million in first‑half results, largely due to lower copper and gold prices—news that can affect sector earnings and investor sentiment.
Energy companies pulled back, with Woodside down 28¢ to $37.50, Santos down 17¢ to $13.64 and Oil Search 5¢ lower at $7.99. These declines helped offset gains in the banking sector and weighed on the broader market.
The Australian dollar dipped to US92.45¢ from US92.54¢ on Friday. The slide in the Japanese market strengthened the yen and reduced demand for higher‑yielding currencies, while weak share prices at car exporters like Toyota and Honda dampened risk appetite. Traders expected the dollar to trade above US92¢ until the Fed ends its two‑day meeting.
Investors were trading cautiously ahead of the Fed meeting, which can influence global risk sentiment and currency moves. The article notes the Australian dollar was expected to remain above US92¢ until the Fed finishes its meeting, implying outcomes from the Fed could change currency and market direction.
Yes, the article reports traders continued to expect an August interest rate cut in Australia, a factor that can influence bank shares, bond yields and overall market sentiment.
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