The local share market is up at noon following strong gains in the energy and financials sectors.

December 8, 2017

The Australian share market is up at noon thanks to strength in banking and energy stocks following a rise in the oil price and the latest stage of global banking reforms.

The benchmark S&P/ASX200 stock index was up 14.8 points, or 0.25 per cent, at 5,992.5 points at 1200 AEDT.

Westpac, which is holding its annual general meeting on Friday, was the strongest of the big four banks, up 0.9 per cent at $31.67.

Westpac chairman Lindsay Maxsted told the AGM criticism of the Australian banking sector is “warranted” but hopes a royal commission into alleged misconduct will restore trust and confidence. 

Commonwealth Bank of Australia also rose, up 0.9 per cent to $79.67, while National Australia Bank climbed 0.6 per cent at $29.85 and ANZ improved 0.2 per cent to $28.53.

Overnight the Basel banking regulation committee in Switzerland announced new capital requirement laws, which were welcomed by Australia’s banking sector.

The Australian Prudential Regulation Authority said the latest round of reforms could be accommodated within guidelines for capital reserves it had set for local banks in July.

Investment bank Macquarie was up 1.4 per cent at $98.165.

Energy stocks were mixed despite a rise in oil prices.

Santos was 0.1 per cent lower, while Origin climbed 1.9 per cent, Oil Search improved 0.7 per cent and Woodside Petroleum gained 0.2 per cent.

The major miners were down following a fall in the iron ore price, with Rio Tinto 0.7 per cent lower and BHP Billiton down 0.5 per cent.

In company news, shares in insurance giant IAG were 4.5 cents, or 0.6 per cent, higher at $7.18 after the company announced it a deal under which three European reinsurers will share a portion of its expenses in return for a matching share of premium income.

Meanwhile, the Australian dollar has continued its slide against the US dollar.

The local currency was trading at 75.06 US cents at 1200 AEDT on Friday, from 75.44 on Thursday.

ON THE ASX AT 1200 AEDT:

* The benchmark S&P/ASX200 was up 14.8 points, or 0.25 per cent, at 5,992.5 points

* The broader All Ordinaries index was up 13.2 points, or 0.22 per cent, at 6,074 points

* The SPI200 futures contract was up 18 points, or 0.30 per cent, at 5,999 points

* National turnover was 1.8 billion securities traded worth $2.15 billion

CURRENCY SNAPSHOT AT 1200 AEDT:

One Australian dollar buys:

* 75.06 US cents, from 75.44 on Thursday

* 85.00 Japanese yen, from 84.88 yen

* 63.79 euro cents, from 63.98 euro cents

* 55.75 British pence, from 56.43 pence

* 109.93 NZ cents, from 110.10 cents

GOLD:

The spot price of gold in Sydney at 1200 AEDT was $US1,247.97 per fine ounce, from $US1,260.29 per fine ounce on Thursday.

BOND SNAPSHOT AT 1200 AEDT:

* CGS 4.50 per cent April 2020, 1.8656pct, from 1.8401pct

* CGS 4.75pct April 2027, 2.4848pct, from 2.4746pct

Sydney Futures Exchange prices:

* December 2017 10-year bond futures contract at 97.45 (implying a yield of 2.55pct), from 97.47 (implying a yield of 2.53pct) on Thursday

* December 2017 3-year bond futures contract at 98.030 (1.970pct), from 98.055 (1.945pct).

(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session).