Late yesterday credit agency Moody’s cut the credit rating of Australia’s big four banks – Commonwealth, Westpac, ANZ and NAB – amid fears they rely too heavily on wholesale debt markets.
“The market doesn’t believe the Moody’s move will affect funding costs, nor that it reflects any real change in banks’ outlook,”Bloomberg quoted White Funds Managements’ Angus Gluskie as saying.
The cut failed to dent the confidence of investors during trading today, with financials rising 1.2% within the S&P/ASX 200, bettered only by mining and energy stocks.
Overall, the S&P/ASX 200 gained 1.3%, or 62.7 points, to 4756.4, as Asian stocks lagged on weaker than expected gross domestic product data out of Japan.
Asian stocks, including Japan’s Nikkei 225 were up in morning trading, but had fallen into negative territory following the glum economic figures.
Locally, miners were helped by a strong rebound in base metals prices overnight, with lead jumping 6.1% to $US2541 per tonne.
Gold also strengthened in New York, adding $15.80 to $1495.80.
Newcrest Mining gained 2.2%, or A86 cents, to $38.77, Perseus Mining jumped 6.2%, or 16c, to $2.71 and Resolute Mining added 6%, or 6c, at $1.07.
BHP Billiton gained 1.2%, or 53c, to $44.82, Rio Tinto added 1.3%, or $1.04, at $81.10 and Fortescue Metals Group closed 1.5%, or 10c, higher at $6.49.
Copper companies performed well with OZ Minerals jumping 5.1%, or 7.5c, to $1.525, PanAust climbing 5.3%, or 4c, to 79.5c and Sandfire Resources soaring 7%, or 49c, to $6.82.
Relative newcomer to the market Oakland Resources jumped 33%, or 5c, to 20c on a new gold discovery at its Spion Kop prospect in New South Wales.
