The share market has enjoyed its strongest gain in a month as bargain hunters moved in and merger and acquisition activity stirred investor interest.
The key S&P/ASX200 index closed one per cent higher, its best session since April 24, though that was off its intraday high.
Trading volumes were low ahead of the Memorial Day holiday in the US on Monday, OptionsXpress market analyst Ben Le Brun said.
“I think it’s a story of bargain hunters swooping on some of these beaten up stocks, and also we’ve seen quite a lot of M&A (merger and acquisition) action today as well,” he said.
Almost all sectors of the market rose, including the big banks and resources stocks.
Aspiring nickel miner Sirius Resources soared 66 cents, or 20.4 per cent, to $3.90 after it received a $1.8 billion takeover offer from gold, nickel, zinc and copper producer Independence Group.
Also in the mining industry, gold miner Evolution Mining is buying the Cowal gold mine in central NSW for $US550 million.
Its shares were halted from trade at $1.175 as it raises capital to help fund its deal.
Workforce provider Skilled Group surged 14.5 cents, or 11.8 per cent, to $1.375 as it confirmed it was in merger talks with rival Programmed. Programmed was 11 cents lower at $2.51.
Among the banks, Commonwealth Bank ascended 89 cents to $84.00, ANZ advanced 27 cents to $32.32, Westpac improved 40 cents to $32.96 and National Australia Bank strengthened 30 cents to $33.53.
BHP Billiton added 23 cents to $29.48, Rio Tinto put on 88 cents to $57.63 and Fortescue Metals was six cents higher at $2.17.
Telstra rose eight cents to $6.28.
KEY FACTS
* On Monday, the benchmark S&P/ASX200 index was up 56.8 points, or one per cent, at 5,721.5 points.
* The broader All Ordinaries index was up 51.7 points, or 0.91 per cent, at 5,719.9 points.
* The June share price index futures contract was 44 points higher at 5,726 points, with 19,333 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,205.30 per fine ounce, down $US3.30 from $US1,208.60 on Friday.
* National turnover was 1.9 billion securities worth $4.0 billion.
