Gains by the major banks, energy stocks and big miners have helped push the Australian share market well over one per cent higher as the oil price lifted and investors considered an improved likelihood of Britain staying in the European Union.
IG chief market strategist Chris Weston said the local bourse had one of its best days of the year on Monday.
“It’s all to do with the clearing of fears around what’s happening with Thursday’s (June 23) UK vote,” Mr Weston said.
Mr Weston said UK and US futures also were up, it looked like European markets would open strongly tonight and the British pound had rallied.
“There’s a position adjustment underway in markets, led by a number of polls that have come out (in the UK),” he said.
“The Sunday Mail has put the balance of probability (of Britain exiting the European Union) at less than 30 per cent.”
Rising confidence over the Brexit outcome helped the financial sector.
Among the major banks, ANZ climbed 63 cents to $23.86, Westpac jumped 80 cents to $29.47, Commonwealth Bank added $2.17 to $74.20, and National Australia Bank gained 71 cents to $25.75.
In the resources sector, global miner BHP Billiton strengthened 79 cents, or 4.37 per cent, to $18.87, Rio Tinto advanced $1.37 to $44.79, and Fortescue Metals firmed 12 cents to $3.36.
A rise in global oil prices over the weekend helped lift oil and gas producers, with Woodside Petroleum surging $1.54, or six per cent to $27.47, Santos soaring 41 cents, or 9.6 per cent, to $4.70 and Origin gaining 50 cents, or 9.4 per cent, to $5.85.
Supermarket wholesale supplier Metcash had plunged 26.5 cents, or 12.5 per cent, to $1.855 despite bouncing back into the black with a $216.5 million annual net profit.
Metcash suffered after reporting a 17 per cent decline in earnings before interest and tax for its key food and grocery division as it battles Coles, Woolworths and Aldi.
KEY FACTS:
* On Monday, the benchmark S&P/ASX 200 index was up 94.1 points, or 1.82 per cent, at 5,256.8 points.
* The broader All Ordinaries index was up 87.3 points, or 1.66 per cent, at 5,335.6 points.
* The September share price index futures contract was up 80 points at 5,197 points, with 29,592 contracts traded.
* The spot price of gold in Sydney at 1700 AEST was $US1,284.10 per fine ounce, up $US4.00 from $US1,280.10 on Friday.
* National turnover was 2.6 billion securities traded, worth $4.8 billion.
