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Aussie stocks continue climb on Thursday

Xinhua, July 14, 2016 Adjust font size:

Aussie stocks have continued the climb on Thursday but found resistance as it approached the 5427 mark, the highest the index has been since May 2015.

Though the benchmark opened strongly to be just over 10 points shy of the threshold, by 1035 local time (AEST) the S&P/ASX 200 index was up only 10.80 points, or 0.20 percent at 5,399.30 points, while the broader All Ordinaries index was up 10.30 points, or 0.19 percent at 5,480.60 points.

As the Aussie market has had a stellar five day rally piling on over five percent from the risk-on sentiment generated by expectations of fiscal and monetary stimulus from the U.K. and Japan, the slight dip after the open isn't anything too sinister as investors take some profit.

"What happens in this first hour is magical, mystical and crazy," IG chief market strategist Chris Weston said, adding the real market action begins after the first hour into the close of trade.

"It would be nice to close above that May high... but I don't see it as being much more than semantics at the moment... but it would be very positive" after the strong run.

The risk-on sentiment is continuing in the early Aussie trade, however the energy and materials space is weighing on the index from falls in iron ore and benchmark crude overnight, suggesting the rally could subside should local labour data fail to meet expectations and limit gains in financials.

"We've had a good rise for about five days in a row. Very seldom do we manage to get six. We've managed to do it once this year," Weston said.

In early trade, ANZ was up 0.49 percent, the Commonwealth Bank of Australia gained 0.45 percent, the National Australia Bank rose 0.55 percent and Westpac lifted 0.58 percent.

BHP Billiton however slumped 1.21 percent, rival Rio Tinto dropped 1.12 percent and gold miner Newcrest was down 2.10 percent.

Oil Search slipped 0.29 percent, Santos fell 1.04 percent and Woodside Petroleum was 0.52 percent weaker.

Wesfarmers was flat in early trade but rival Woolworths climbed 0.84 percent.

Qantas edged 0.17 percent higher and Telstra was up 0.62 percent. Endit