The Australian sharemarket is trading at its highest level for the year, led by the major banks.
Lonsec senior client adviser Michael Heffernan said the Australian market was looking very strong.
“The banks are just powering (ahead). That’s probably due to the reports (three of the four big banks’ annual financial results) that are due to come out tomorrow and the next day and over the next week,” Mr Heffernan said.
“The market now is almost getting up towards 5,500 points, so this has been a real red-letter day.”
Since the recent US debt ceiling agreement, global markets have been pushing higher as investors show more willingness to take risks in the absence of bad news.
“The US and Europe are looking good at the moment,” Mr Heffernan said.
“All the problems that have been besetting us over the last five years are now getting neutralised, and that is an underlying positive theme for the market.
Among the major banks at 1202 AEDT, ANZ was up 53 cents at $33.19, National Australia Bank rose 73 cents to $36.81, Commonwealth Bank gained $1.08 at $73.36, and Westpac climbed 49 cents to $34.85.
National Australia Bank and ANZ release their full year results this week.
In the resources sector, global miner BHP Billiton was up 47 cents at $37.88, and Fortescue Metals firmed 30 cents at $5.41.
Rio Tinto improved 83 cents to $64.60 after it agreed to sell its majority stake in its Clermont coal mine, in central Queensland, for more than $1 billion.
Among other companies, Ardent Leisure Group was 4.5 cents richer at $2.015 after a solid performance from its health clubs division helped boost first quarter revenue and earnings.
Treasury Wine Estates advanced five cents to $4.58 as shareholders moved to take legal action against the winemaker over writedowns related to excess stock in the United States.
KEY FACTS
* At 1207 AEDT on Monday, the benchmark S&P/ASX200 index was up 68.8 points, or 1.28 per cent, at 5,455.1 points.
* The broader All Ordinaries index was up 65.4 points, or 1.21 per cent, at 5,451.1 points.
* The December share price index futures contract was up 61 points at 5,446 points, with 13,542 contracts traded.
* National turnover was 744.1 million securities worth $1.48 billion.
