The share market has rallied to a six year high due to Rio Tinto’s massive shareholder returns, rising oil prices and optimism from a ceasefire agreement in Ukraine.
The market’s strongest one day gain in six weeks sent the All Ordinaries and S&P/ASX200 indices to their highest levels since mid-2008.
“It was based on a positive cocktail of factors including geopolitical tensions easing out of the Ukraine, earnings coming along nicely, the potential for more rate cuts coming from the RBA and an improvement in the macro factors such as Greece,” OptionsXpress market analyst Ben LeBrun said.
The big miners led the gains, with BHP adding $1.47, or 4.8 per cent, to $32.17, Fortescue Metals adding 14 cents to $2.59 and Rio Tinto gaining $3.89, or 6.5 per cent, to $63.79 after announcing a $US2 billion share buyback.
RBA governor Glen Stevens’ comments that more than one further rate cut may be needed if unemployment continues to rise lifted the banks, and Telstra.
Commonwealth Bank added $1.97 to $93.15, National Bank gained 77 cents to $37.48, ANZ lifted 76 cents to $35.74 and Westpac was 84 cents higher at $37.53.
Telstra gained 14 cents to $6.59.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was up 133.9 points, or 2.33 per cent, at 5,877.5.
* The broader All Ordinaries index was up 127.8 points, or 2.24 per cent, at 5,835.5, according to preliminary figures.
* The March share price index futures contract was 103 points higher at 5,820, with 39,484 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1,229.95 per fine ounce, up $US7.85 from $US1,222.10 on Thursday.
* National turnover was 1.9 billion securities worth $7.2 billion.
