Close Local shares put on a stunning performance today, rising more than 2 per cent, as investors shifted their focus from a wobbly US economy to yet more signs of a remarkably robust local economy.
At the close, the benchmark S&P/ASX200 index was up 91.5 points, or 2.1 per cent, at 4495.7, while the broader All Ordinaries index added 88 points, or 2 per cent, to 4526.8.
All sectors posted gains, with materials jumping 2.5 per cent and financials up 2.2 per cent.
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A run of very positive economic figures in the last few days cemented by today's better than expected GDP print, have confirmed that the economic recovery is very much on track in Australia despite the mid-cycle consolidation globally, CMC Markets institutional equities dealer David Barrett-Lennard said.
Gross domestic product grew 1.2 per cent in the June quarter for an annual rate of 3.3 per cent. Economists’ forecasts had centred on a quarterly rise of around 0.9 per cent for an annual rate of 2.7 per cent..
Reassuringly, household consumption showed a robust increase in the quarter, alleviating some concern which has existed over the financial stress of the consumer, Mr Barrett-Lennard said.
In addition, China's purchasing manufacturing index (PMI) read came in ahead of expectations. Both sets of data teamed up to push the Australian market ahead of its regional peers.
"The relative strength suggests that our market was benefiting from allocation back into Australian equities by overseas investors," he said.
BHP Billiton closed up 86 cents, or 2.3 per cent, at $37.91, while Rio Tinto was $2.15 higher, or 3.1 per cent up, at $72.24.
The major banks were also firmer, with National Australia Bank the best performer, its shares were up 65 cents, or 2.8 per cent, at $23.85. ANZ closed up 55 cents at $23.14, Commonwealth Bank was $1.01 higher at $51.31, and Westpac was up 65 cents at $22.35.
Nufarm slumps
In news, Nufarm shares dropped nearly 10 per cent after the company said net debt will be higher than previously estimated. Shares later recovered but still ended the day down 26 cents, or 6.8 per cent, to $3.59.
QBE Insurance Group said chief executive Frank O’Halloran was to remain in the position, and dismissed reports it was searching for a new boss. Shares in QBE ended up 28 cents, or 1.7 per cent, at $16.77.
Supermarket chain Woolworths closed up 47 cents at $28.23, while Coles owner, Wesfarmers, was 76 cents higher at $32.72.
The energy sector was stronger, with Santos up 9 cents at $14.29, while Woodside Petroleum was $1.03 cents higher, or 2.5 per cent, at $42.90.
Gold miner Newcrest Mining, which has just taken over fellow gold miner Lihir Gold, closed up 65 cents, or 1.74 per cent, at $37.90.
Focus Minerals was the top traded stock by volume, with 84.49 million shares changing hands for $3.83 million. Shares in the gold and nickel explorer closed up 0.5 cents, or 11.9 per cent, at 4.7 cents.
Preliminary national turnover reached 1.98 billion shares worth $5.67 billion, with 720 stocks up, 364 up, and 332 unchanged.
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AAP, Reuters, with BusinessDay