The Australian share market has kicked off the week strongly, thanks to gains in mining and financial companies.
Investors flocked to BHP Billiton, Rio Tinto and banking stocks on Monday following strong leads from international markets on Friday, Bell Direct equities analyst Julia Lee said.
The falls on Chinese stock markets on Monday were smaller than expected after a week-long holiday, which has soothed some local investor fears, Ms Lee said.
The benchmark S&P/ASX 200 index rose 78.2 points, or 1.64 per cent, to 4,843.5 points after the Dow Jones Industrial Average rose two per cent on Friday, while the UK’s FTSE 100 index jumped 3.1 per cent.
BHP closed 89 cents , or 5.9 per cent, higher to $15.98 and Rio Tinto ended the day up $1.75, or 4.3 per cent, to $42.22.
“I think the technicals are just looking a little bit clearer for the likes of BHP and Rio Tinto, and that’s being reflected in the (materials) sector,” Ms Lee said.
Amcor shares rose $1.17 to $13.40 after the packaging company forecast higher annual earnings, on a constant currency basis, from a year ago.
ANZ led the gains among the nation’s top four banks, following some respite overseas for the sector after Deutsche Bank acquired 10 per cent of its debt and JPmorgan Chase boss Jamie Dimon bought a significant amount of the company’s shares, Ms Lee said.
ANZ rose 66 cents to $22.84, National Australia Bank gained 61 cents to $24.75, Westpac rose 57 cents to $28.63, and the Commonwealth Bank of Australia closed 97 cents higher at $74.30.
Investment bank Macquarie Group was also strong, ending the session up $1.33 to $59.67.
Bendigo and Adelaide Bank bucked the trend, closing 37 cents lower at $8.86 after the regional lender posted a 8.2 per cent fall in first-half net profit amid fierce competition.
Telco giant Telstra finished 13 cents lower at $5.44, hurt by profit taking after last week’s strong run.
Broadspectrum shares rose 7.5 cents to $1.14 after the detention centre operator announced plans to buy back up to 10 per cent of its shares as Spanish infrastructure and services giant Ferrovial mulls its hostile takeover offer for the company.
KEY FACTS:
* At 1616 AEDT, the benchmark S&P/ASX200 index was up 78.2 points, or 1.64 per cent, at 4,843.5 points.
* The broader All Ordinaries index was up 76.8 points, or 1.59 per cent, at 4,893.4 points.
* The March share price index futures contract was 47 points higher at 4,871, with 16,380 contracts traded, based on preliminary figures.
* National turnover was 2.0 billion securities traded, worth $5.7 billion.
