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Category: Business, Economics and Finance / Economic Trends / Insurance / Stockmarket

Australian shares close higher but insurers fall

Monday, 6 Jun 2016 15:23:41 | Justine Parker

Investors watch the share price monitors through the window as stocks tumble on the Australian Stock Exchange (ASX) in Sydney on August 8, 2011. (AFP: Torsten Blackwood)

Australian shares have closed higher as rising gold and iron ore prices boosted mining stocks, but insurers were among the biggest losers after powerful storms lashed the east coast on the weekend.

The All Ordinaries Index rose 0.7 per cent to close at 5,431 and the ASX 200 Index added 0.8 per cent to finish on 5,360.

Gold miners soared as the yellow metal touched a two-week high as chances of a rate hike by the US Federal Reserve dimmed after a weak employment report in the United States on Friday.

St Barbara surged 15.3 per cent to $3.02, posting the second biggest gain on the ASX 200, while Newcrest Mining climbed 11.6 per cent to $22.06, its highest price since March 2013.

Spot gold traded slightly lower after the big gains to $US1,241 an ounce.

The big banks were mostly higher, led by a 1.1 per cent jump for the Commonwealth Bank to $76.60, while ANZ went backwards, down 0.5 per cent to $24.96.

But insurers were hit hard in anticipation of big claims in the wake of the weekend's fierce storms on the east coast.

Insurance Australia Group was among the biggest losers of the day, down 2.2 per cent to $5.72, while Suncorp fared little better, down 1.7 per cent to $12.56.

In economic news, the ANZ Job Advertisements Series showed firms began hiring again last month, with job listings rising by 2.4 per cent in May, putting yearly growth at just over nine per cent.

Job ads had been broadly flat in the previous six months.

Meanwhile, the Melbourne Institute Monthly Inflation Gauge found consumer prices went backwards last month, falling 0.2 per cent, and putting the annual rate of inflation at just 1 per cent.

The figures come before the Reserve Bank's monthly policy meeting tomorrow, at which it's expected to keep interest rates on hold at the record low of 1.75 per cent.

The dollar was lower against the greenback, unwinding some of the weekend's gains; at 4:40pm AEST it was buying 73.3 US cents.

Against other major currencies, it was fetching 64.6 euro cents, 78.4 Japanese yen and 51 British pence.

In commodity trade, oil prices were slightly higher with Brent crude up more than 0.7 per cent to $US50.02 a barrel.

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