Close Australian stocks rallied today, touching a five-month high as banks surged and and miners raced ahead on higher metal prices.
At the close of trade, the benchmark S&P/ASX200 Index was 73.4 points higher, or 1.6 per cent, at 4675.3, while the broader All Ordinaries Index had risen 70.6 points, or 1.5 per cent, to 4722.1.
All sectors posted gains apart from telecommunications and gold. Financials jumped 1.9 per cent and materials gained 1.4 per cent.
need2know:
- Asian shares rise on US recovery hopes
- The dollar hovers just below 96 US cents
- Gold trades little changed at $US1298
- Oil inches up towards $US77
- Dow futures are up 194 points at 10,800
The resources-heavy local market moved in tandem with Asian markets, which rose to their highest levels in more than two years, but it received an additional boost from copper hitting five-month highs and gold notching up a record $US1300 per ounce.
Markets were buoyed by renewed optimism on the US economy, with Wall Street notching up a fourth straight week of gains.
The good news lifted the dollar, which hit a fresh two-year high of 96.24 US cents this morning.
CMC Markets market analyst David Taylor said recent data on orders for durable goods in the United States had been encouraging.
‘‘The manufacturing sector has been the monkey on the back of the US for quite some time now,’’ Mr Taylor said. ‘‘The market is now getting the view that the US is not heading into a double-dip recession, which is being priced into the market.
‘‘We benefit from that because we’re reliant upon China, and that’s dependent upon US growth, too.
‘‘It’s good news. It’s a broad thematic that’s playing out, and it’s one of increased risk appetite.’’
On the local bourse among the major banks, the Commonwealth Bank was up $1.04 at $52.86, ANZ added 60 cents to $24.20, National Australia Bank was 45 cents higher at $26.00, and Westpac strengthened 35 cents to $44.83.
In the resources sector, global miner BHP Billiton found 62 cents at $39.66, and Rio Tinto advanced $1.55 to $77.15.
Wesfarmers jumps on Bunnings news
Wesfarmers rose 2.9 per cent to $34.73, after the conglomerate revealed plans to invest more than $600 million expanding its Bunnings hardware retail chain in the country's most populous state.
"The market likes how aggressive Wesfarmers has become. You can see it with the Coles supermarket chain, and now they're attacking the home hardware market," said Mr Taylor.
Iron ore miner Murchison Metals lost 10 per cent to $1.62, despite denying a media report that its Japanese partner, Mitsubishi, was withdrawing from their mining joint venture in Western Australia.
Conquest Mining firmed 2 cents to 50 cents as it gained control of more than 50 per cent of North Queensland Metals, after rival Heemskirk Consolidated allowed its offer to lapse.
Gas company Metgasco surged 5.5 cents to 50 cents and Liquefied Natural Gas climbed 0.5 cents to 45 cents after they agreed to jointly study the feasibility of a project to convert gas to liquefied natural gas at Gladstone in Queensland.
Among other stocks, Wesfarmers was up 98 cents at $34.73 after it said its hardware chain, Bunnings, would increase investment in NSW by more than $600 million to set up 18 new stores over the next three years.
Nufarm seals deal with banks
Agricultural chemicals supplier Nufarm picked up 5 cents at $4.10 as it won a reprieve from bankers after breaching its financial obligations, but decided not to pay a full year dividend.
CFS Retail Property Trust fell five cents to $1.90 after completing a $540 million equity sale enabling its purchase of four Direct Factory Outlet (DFO) centres.
Plumbing supplier Crane Group advanced 5 cents to $8.50 after it said it would acquire full ownership of home building supplier Hudson Building Supplies Pty Ltd for $31.5 million.
The top-traded stock by volume was gold and copper explorer Zambezi Resources, with 54.2 million shares worth $979,480 changing hands. Zambezi Resources was down 1.2 cents at 1.8 cents.
Preliminary national turnover was 2.2 billion shares worth $5.03 billion, with 715 stocks up, 363 down and 364 unchanged.
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AAP, Reuters, with BusinessDay