The share market gained ground as mining companies, banks and energy producers performed strongly.
Traders were factoring in potential falls in the Australian dollar following Canada’s decision to cut interest rates, which would benefit exporters, RBS Morgans director of equities Bill Chatterton said.
There is also an expectation the European Central Bank will vote on Thursday to buy about 50 billion euros ($A72 billion) worth of bonds a month for at least a year as a stimulus measure.
“The big winners today have been BHP, Rio and the banks and Oil Search and Woodside, who have been enormously volatile, have bounced back today as well,” he said.
Rio Tinto and BHP Billiton were also stronger after encouraging quarterly production reports earlier this week, while energy stocks benefited from improvements in crude oil prices.
BHP was up 80 cents, or 2.9 per cent, at $28.85, Rio Tinto added $1.41, or 2.6 per cent, to $56.50, while iron ore producer Fortescue Metals dropped 15 cents to $2.17.
Oil and gas producer Woodside Petroleum rose $1.02, or 3.1 per cent, to $33.62, Santos gained nine cents to $7.42 and Oil Search was 27 cents higher at $7.68.
Among the banks, Commonwealth Bank added 56 cents to $85.23, Westpac gained 48 cents to $33.86, National Australia Bank was 25 cents higher at $34.33 and ANZ rose 14 cents to $31.77.
Shares in packaging company Amcor dropped 52 cents, or four per cent, to $12.36 after chief executive Ken Mackenzie announced he would resign at the end of the financial year.
KEY FACTS
* At the close on Thursday, the benchmark S&P/ASX200 index was up 26.5 points, or 0.49 per cent, at 5,419.9 points.
* The broader All Ordinaries index was up 23.1 points, or 0.43 per cent, at 5,390.5.
* The March share price index futures contract was 20 points higher at 5,363, with 24,181 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1291.40 per fine ounce, down $US8.80 from $US1,300.20 on Wednesday.
* National turnover was 1.6 billion securities worth $5.1 billion.
