The Australian sharemarket has opened higher as investors continuing to chase high yielding stocks.
At 1028 AEDT on Monday, the benchmark S&P/ASX200 index was up 19.3 points, or 0.38 per cent, at 5,037.4 points, while the broader All Ordinaries index was also up 19.3 points, or 0.38 per cent, to 5,056 points.
On the ASX 24, the March share price index futures contract was up 28 points at 5,021 points, with 9,719 contracts traded.
IG Markets broker Chris Weston said investors were continuing to chase high yielding stocks as the Italian elections were making them risk averse.
“There’s a little bit of hesitation to put any sort of sizeable trades considering the risk in what’s going to happen in the Italian election tonight,” he said.
“But that sort of thing reinforces the yield play and because an Italian election doesn’t really affect the safe haven of a yield play.”
US stocks closed higher on Friday on renewed confidence that the US Federal Reserve stimulus program will continue.
The Dow Jones Industrial Average jumped 119.95 (0.86 per cent) to 14,000.57.
In Europe, London’s FTSE 100 index of leading companies added 0.70 per cent to close at 6,335.7 points, while Frankfurt’s DAX 30 rose 1.03 per cent to 7,661.91 points, and in Paris the CAC 40 jumped 2.25 per cent to 3,706.28 points.
Locally, Ten Network shares rose 2.75 cents, or 9.32 per cent, to 32.25 cents after it sacked chief executive James Warburton and replaced him with News Corporation executive Hamish McLennan.
Mr Weston said the rise in the stock could be because Mr McLennan’s appointment could point to a possible takeover bid for Ten by News Corp.
Caltex Australia shares also rose 29 cents, or 1.59 per cent, after it announced it had returned to profitability with a net profit of $149 million for the year to December 31.
Patties Foods and IOOF Holdings are expected to post first half results later on Monday and Spark Infrastructure Trust is also due to announce full year results.
The four major banks all opened higher.
Westpac was up 34 cents to $30.21, ANZ added 16.5 cents to $28.325, National Australia Bank gained 26 cents to $30.08 and Commonwealth Bank surged 37 cents to $65.92.
National turnover was 288.48 million securities worth $519.12 million with 398 up, 202 down and 828 unchanged.
