The Australian share market closed stronger, driven by resource and banking stocks on the expectations of a cut in domestic interest rates and a soft economic landing in China.
At 1615 AEST on Monday, the benchmark S&P/ASX200 index was 34.5 points, or 0.79 per cent, higher at 4,396.6 points, while the broader All Ordinaries index was up 33.8 points, or 0.76 per cent, at 4,467.2 points.
On the ASX 24, the June share price index futures contract was 28 points higher at points, with 19,578 contracts traded.
RBS Morgans Brisbane private client adviser Simon Ferguson said the market had responded positively to the anticipation of the central bank cutting interest rates on Tuesday.
“I think there’s a bit of anticipation that the RBA (Reserve Bank of Australia) could cut interest rates by as much as 50-basis points tomorrow,” he said.
“Also the high-yielding stocks did quite well.
“Telstra was solid again and the banks generally were pretty solid.”
In local economic news, industry lobby group the Housing Industry Association called on the RBA to deliver a 50-basis point interest rate cut.
This followed a survey that showed new home sales had fallen to their lowest level in more than a decade.
Industrial services company Spotless was up 10 cents at $2.56 after it agreed to a full takeover by private equity firm Pacific Equity Partners for $2.71 a share.
Troubled miner gold, copper and silver miner Kagara has appointed voluntary administrators.
The miner’s shares have been in a trading halt at 12 cents for more than a week, after plunging more than 68 per cent in the previous three three months.
National Australia Bank shares were up eight cents at $25.23 after it announced it would restructure its loss-making business in the United Kingdom that contributed to a 15.6 per cent fall in the group’s first half profit.
The other three major banks were also all higher. Commonwealth Bank was up 38 cents at $51.97, ANZ was 25 cents higher at $23.91 and Westpac was up 14 cents at $22.73.
The mining giants all also showed gains on Monday.
CMC Markets chief market analyst Ric Spooner said there was improving sentiment among investors about a soft landing in China rather than a hard one in relation to economic growth.
BHP Billiton was 66 cents higher at $35.55, Rio Tinto was 92 cents higher at $66.35 and Fortescue Metals was at one cent higher at $5.64.
National turnover was 1.97 billion shares worth $3.69 billion, with 569 stocks up, 453 stocks down and 434 unchanged.
