The share market is pushing towards the landmark 6,000 point level, a high not reached in more than seven years, but can’t quite get there.
OptionsXpress market analyst Ben Le Brun said shares jumped out of the blocks in early trading on strong leads from overseas markets.
“The lead from Wall Street certainly got us out of the blocks in a positive mood, and there’s a bit of bullish sentiment in the Asian region as well,” he said.
The benchmark S&P/ASX200 index came within four points of 6,000, but then fell back by noon (AEST).
Investors may wait until May to push the market significantly higher, when the Reserve Bank is expected to cut the cash rate and earnings reports from three of Australia’s big four banks, plus US companies, are released, Mr Le Brun said.
Most sectors of the market were higher on Monday, except for miners, after iron ore producer Atlas Iron’s announcement late on Friday it is ceasing all operations because of steep falls in the iron ore price.
BHP Billiton was down 39 cents at $29.75, Rio Tinto had dropped 61 cents to $56.28, while Fortescue Metals had edged half a cent higher to $1.82 after founder and chairman Andrew Forrest said the company will not increase iron ore production beyond current levels.
Among the major banks, Commonwealth Bank was up 26 cents at $94.39, National Australia Bank had lifted eight cents to $39.60, Westpac had improved five cents to $39.93 and ANZ was steady at $36.80.
Seven Group Holdings was 17 cents lower at $7.15 after announcing Ryan Stokes, the 38-year-old son of company founder Kerry Stokes, will be its new chief executive.
Logistics group Qube, which provides stevedoring services to Atlas Iron, had firmed three cents to $2.83 after saying Atlas Iron’s move is not expected to have a material financial impact on its underlying earnings this financial year.
KEY FACTS
* At 1205 AEDT on Monday, the benchmark S&P/ASX200 index was up 13.9 points, or 0.23 per cent, at 5,982.3 points.
* The broader All Ordinaries index was up 14.9 points, or 0.25 per cent, at 5,950.3 points.
* The June share price index futures contract was up 24 points at 5,977 points, with 8,692 contracts traded.
* National turnover was 718 million securities worth $1.06 billion.
