The Australian share market has closed nearly two per cent higher, posting gains for a third straight session, as a strong rise in oil prices lifted markets worldwide.
The head of sales at Vital Addition, Betty Lam, said the positive offshore leads on Friday had boosted confidence on the local bourse.
She said the Australian market generated surprisingly strong trading volumes ahead of the Australian Day holiday on Tuesday.
“We did see some very positive leads on Friday and Saturday morning from the markets offshore,” Ms Lam said.
“We did see oil prices gain 10 per cent.
“Energy stocks have skyrocketed today.”
Oil prices have jumped back above $US32 a barrel.
Ms Lam said the banks also made strong gains as investors decided to rebuild their positions in the sector following last week’s sell-off.
However, the big miners such as BHP Billiton and Rio Tinto lagged.
Ms Lam said investors wanted to see some consistent rises in the prices for base metals and iron ore before renewing their interest in the sector.
In the energy sector, oil and gas producer Woodside Petroleum jumped 97 cents, or 3.81 per cent, to $26.42, and Santos ascended 12 cents, or 4.23 per cent, to $2.96.
Beach Energy surged four cents, or 10.81 per cent, to 41 cents despite saying late on Friday that it would take impairment charges of up to $650 million in its half year accounts.
The big four banks all made gains of more than three per cent. Westpac climbed 98 cents to $30.91, Commonwealth Bank advanced $2.44 to $79.00, National Australia Bank found 84 cents at $27.76, and ANZ Bank improved 80 cents to $24.15.
KEY FACTS:
* At 1619 AEDT, the benchmark S&P/ASX200 index was up 90.6 points, or 1.84 per cent, at 5,006.6 points.
* The broader All Ordinaries index was up 87.5 points, or 1.76 per cent, at 5,057.1 points.
* The March share price index futures contract was up 73 points at 4,952 points with 30,056 contracts traded, according to preliminary calculations.
* Preliminary national turnover was 1.8 billion securities traded worth $4.2 billion.
