The Australian share market has closed nearly one per cent higher, boosted by bargain hunters, stronger regional markets, a lift in the iron ore price and some encouraging corporate earnings reports.
OptionsXpress Ben Le Brun said the local market was showing some momentum after gains made during last week.
The bourse finished above the psychologically comforting level of 5,000 points based on a combination of macro and domestic factors.
“There’s plenty of strength in the region. It’s a combination of bargain-hunting and some short position covering as well, especially in some of those beaten-up sectors such as energy and materials,” Mr Le Brun said.
“There was another one per cent gain in the iron ore price.
“There’s some relatively optimistic profit-reporting as well, which has certainly helped.”
Among the companies to report their financial results on Monday, pallets, crates and containers supplier Brambles surged 94 cents, or 8.5 per cent, to $12.00 after it raised its full-year earnings guidance.
Steelmaker Bluescope Steel lifted nine cents to $5.57 after it booked a half-year net profit of $200.1 million, more than double last year’s.
Private health insurer nib climbed 24 cents, or 7.32 per cent, to $3.52 after it reported a five per cent rise in first-half profit.
Trans-Tasman printing group PMP fell one cent to 46 cents as it blamed a 58.8 per cent drop in first-half profit on faltering electronics retailer Dick Smith.
In the resources sector, global miner BHP Billiton jumped 57 cents to $17.18, Rio Tinto added $1.37 to $43.99, and Fortescue Metals improved 18 cents to $2.17.
In the energy sector, oil and gas producer Woodside Petroleum slipped 38 cents to $27.72, and Santos was steady at $3.39.
Among the big banks, ANZ eased eight cents to $23.32, Westpac advanced 32 cents to $30.10, Commonwealth Bank rose 81 cents to $74.24, and National Australia Bank firmed four cents to $25.66.
KEY FACTS
* At 1621 AEDT, the benchmark S&P/ASX200 index was up 48.4 points, or 0.98 per cent, at 5,001.2 points.
* The broader All Ordinaries index was up 48.3 points, or 0.96 per cent, at 5,056.6 points.
* The March share price index futures contract was up 41 points at 4,961 with 29,145 contracts traded, according to preliminary calculations.
* Preliminary national turnover was 2.7 billion securities traded, worth $5.1 billion.
