Resources stocks and the major banks have led the Australian share market one per cent higher in the wake of a positive lead from US markets and higher prices for oil, iron ore and copper.
CMC Markets chief market analyst Ric Spooner said commodity prices were always a major influence on the Australian share market.
“The key factor for the last 24 hours has been stronger commodity prices, which is continuing today. Oil is creeping up a little bit in Asia’s markets,” Mr Spooner said.
Mr Spooner said that concerns about credit problems and bad debts arising from lower commodity prices in the resources and energy sectors had been substantially relieved, at least in the short term, by the recent improvement in prices.
“That’s helped the overall risk atmosphere,” Mr Spooner said.
The improved risk outlook had helped boost the big banks.
Mr Spooner also said a good jobs report out of the US on Friday had allayed investors’ worries about a sluggish US economy.
In the resources sector, global miner BHP Billiton rose 88 cents to $18.55, and Rio Tinto climbed $1.57 to $46.47. Iron ore pureplay Fortescue Metals surged 59 cents, or 23.69 per cent, to $3.08 as spot iron ore prices stay above the $US50-a-tonne mark.
Among energy stocks, oil and gas producer Woodside Petroleum added 66 cents to $27.66, and Santos gained six cents at $3.96.
Energy infrastructure giant APA Group eased two cents to $8.47 after it made a $130.3 million all-cash bid to take over Ethane Pipeline Income Fund (EPIF), which owns the Moomba-to-Sydney ethane gas pipeline. EPIF soared 44 cents, or 29.93, per cent to $1.91.
In the banking sector, Commonwealth Bank improved $1.15 to $76.89, Westpac advanced 41 cents to $32.12, ANZ ascended 46 cents to $25.48, and National Australia Bank found 60 cents at $27.23.
Among other stocks, takeover target Broadspectrum found 0.5 cents to $1.21. Spanish infrastructure giant Ferrovial has doubled its stake in Broadspectrum, despite saying it would consider its options for taking over the detention centre operator.
KEY FACTS:
* At 1622 AEDT, the benchmark S&P/ASX200 index was up 52.8 points, or 1.04 per cent, at 5,142.8 points.
* The broader All Ordinaries index was up 53.6 points, or 1.04 per cent, at 5,204.7 points.
* The March share price index futures contract was up 46 points at 5,131 points, with 32,900 contracts traded, according to preliminary calculations.
* Preliminary national turnover was 2.9 billion securities traded, worth $6.0 billion.
