The Australian sharemarket has risen as investors chase high yielding banking stocks during a positive Asian session.
CMC chief market analyst Ric Spooner said the local market was buoyant following positive performances across Asia on Monday and strong leads from the United States and Europe.
“It appears the market is ready to get going again on those high yielding stocks,” Mr Spooner said.
“It’s driving confidence in the overall market.”
Mr Spooner said the ASX200 was among the better performing markets during the Asian session.
Investors are also confident that the US Federal Reserve will maintain its current tone ahead of Fed Reserve chair Janet Yellen’s testimony to Congress this week.
“The market’s looking forward to pretty supportive US data plus central bank support.”
Shares in David Jones have been placed in a trading halt as investors overwhelmingly backed a $2.2 billion foreign takeover of Australia’s oldest department store.
The shares last traded at $3.93.
The major banks were all higher, with ANZ gaining 21 cents to $33.56, Westpac 25 cents up at $34.20, NAB lifting 21 cents to $33.88 and Commonwealth Bank climbing 51 cents to $81.74.
The big miners were mixed, with BHP Billiton 30 cents higher at $37.88, Rio Tinto up four cents to $62.18 but Fortescue Metals was 5.5 cents lower at $4.28.
KEY FACTS
* At 1200 AEST on Monday, the benchmark S&P/ASX200 index was 28.3 points, or 0.52 per cent, higher at 5,515.1.
* The broader All Ordinaries index was up 25.9 points, or 0.47 per cent, at 5,500.5.
* On the ASX 24, the September share price index futures contract was five points higher at 5,459 with 9,837 contracts traded.
* National turnover was 620 million securities worth $907 million.
