CBA shares record as ASX ends higher

Commonwealth Bank shares notched a record and edged closer to $100 per share as the biggest players on the Australian market led gains.

Commonwealth shares peaked at $98.84 as investors expect banks to thrive on an economy rebounding from the coronavirus recession.

A late slip let the shares close lower by 0.03 per cent to $97.76.

The 20 biggest companies on the market rose 0.84 per cent - more than any other recognised group.

The giants helped the benchmark S&P/ASX200 index close higher by 42.4 points, or 0.6 per cent, to 7066 on Tuesday.

The All Ordinaries closed up 43.3 points, or 0.6 per cent, to 7299.1 points.

Burman Invest chief investment officer Julia Lee said the Commonwealth record showed the strength of banks' recovery from the pandemic.

The Commonwealth has had a string of share price records recently.

However buying those shares may have drawbacks.

"It's a case of how much of a premium are you willing to pay," Ms Lee said.

"How much more growth do you expect given all the banks are exposed to the Australian housing market."

Property prices have skyrocketed during the pandemic as buyers take advantage of low interest rates.

"If some rules were brought in to cool the housing market, that would be a risk," Ms Lee said of bank shares.

The top shares were commodity-based.

Energy shares rose 1.63 per cent. Beach and Woodside were up more than two per cent.

Materials shares increased 1.63 per cent, helped by rising iron ore prices.

The mining giants enjoyed the benefits. BHP climbed 1.85 per cent to $50.52. Fortescue gained 2.03 per cent to $23.57. Rio Tinto climbed 2.12 per cent to $128.71.

South32 increased full-year production forecasts for four sites. Shares rose 2.36 per cent to $3.03.

There was strong trade across Asian markets, despite Wall Street stocks having closed lower.

Several major US retailers including Walmart report earnings this week. Investors will study whether rising prices and inflation affected sales.

The minutes of the Reserve Bank of Australia's May board meeting followed a well-worn script.

The board was determined to keep interest rates low until inflation returns to target levels. The board does not expect this until 2024 at the earliest.

On the ASX, analytics software vendor Nuix rose 11.46 per cent to $3.50 after its leaders vowed to improve performance.

The company had a high profile listing last year but in February revealed it would not meet earnings expectations.

CCZ Statton Equities' John Zemek said executives seemed to have appeased investors.

"The damage is probably done now," he said.

"They've taken the hit and explained their earnings model more clearly."

Fibre cement supplier James Hardie posted a nine per cent gain in full-year net profit after tax, helped by US sales.

Hardie's profit for the 12 months to March 31 was $US262.8 million.

No final dividend was declared. The company said ordinary payouts would return this financial year.

Shares were lower by 4.51 per cent to $40.20.

On Wednesday, workers' wages data will be published by the Australian Bureau of Statistics.

Economists expect the index will rise 0.5 per cent, slightly less than the 0.6 per cent recorded three months earlier.

This will leave the annual rate at just 1.4 per cent, well short of what the RBA wants.

The Australian dollar was buying 78.08 US cents at 1725 AEST, higher from 77.60 US cents at Monday's close.

ON THE ASX

* The benchmark S&P/ASX200 index closed higher by 42.4 points, or 0.6 per cent, to 7066 on Tuesday.

* The All Ordinaries closed up 43.3 points, or 0.6 per cent, to 7299.1 points.

* At 1725 AEST, the SPI200 futures index was down six points, or 0.08 per cent, to 7055.

CURRENCY SNAPSHOT

One Australian dollar buys:

* 78.08 US cents, from 77.60 cents on Monday

* 85.09 Japanese yen, from 84.73 yen

* 64.03 Euro cents, from 63.92 cents

* 55.01 British pence, from 55.00 pence

* 107.71 NZ cents, from 107.49 cents.