Miners, energy stocks hold Australian benchmark at 2-month closing high

Australian shares rose slightly to a two-month closing high on Wednesday, with heavyweight miners and energy stocks rebounding on firmer commodity prices, while a sharp decline in major banks capped the advance.

The S&P/ASX 200 finished 0.14% higher at 8,820.60 points, its strongest closing point since November 10 last year.

The mining sub-index jumped 0.9% to its highest closing point, moving in tandem with copper prices scoring a record high.

Top miners BHP and Rio Tinto advanced 1.1% and 0.8%, respectively.

Gold miners also closed at a peak as bullion prices hit a lifetime high.

Local shares of top gold producer Newmont Corp advanced more than 2% to scale a fresh peak, while local producers Northern Star Resources and Evolution Mining added 1.4% and 0.7%, respectively.

Financials, however, slipped 0.7%, led lower by all the “Big Four” banks.

Top lender Commonwealth Bank of Australia lost 1.3% to end at its lowest level since mid-December last year. Other top banks shed between 0.3% and 1.1%.

Banks continue to face selling pressure amid expectations of an increase in key cash rates this year, Craig Sidney, senior investment adviser at Shaw and Partners, said.

Rich valuations and a realignment of the monetary policy path following sticky inflation have prompted a rotation out of the banking sector in the past few weeks.

“There’s certainly a bit of money going into the likes of BHP and Rio Tinto,” Sidney said.

Swaps indicate a 27% chance that the Reserve Bank of Australia will raise the 3.6% cash rate by a quarter point when it meets on February 3.

Energy stocks added 2.3% with Santos and Woodside Energy climbing nearly 3% each. In New Zealand, the benchmark S&P/NZX 50 index ended 0.7% higher at 13,757.71 points.