The share market has hit a new high for 2016 as energy and mining stocks continue to rally on higher commodity prices.
The benchmark S&P/ASX 200 rose 1.09 per cent, outperforming most other markets, to end the trading day 5,272.7 points, its highest level since December 31.
Bell Direct equities analyst Julia Lee said the market is benefiting from Australia’s exposure to the mining and energy industries, with iron ore and oil prices up three per cent overnight.
International investors have also been piling into the local market because of the rising Australian dollar, Ms Lee said.
Woodside Petroleum jumped $1.55 to $27.95, Rio Tinto gained $1.25 to $52.55 and BHP Billiton rose 71 cents to $21.05.
BHP, Rio Tinto, Fortescue Metals and South32 have risen between 38 per cent and 21 per cent over the past 10 trading session, Ms Bell said.
“Given the outperformance in the miners and the fact that a lot of portfolios would be underweight in mining, it’s a bit of a catch up story,” she said.
The banks also found support on Thursday, in line with the broader market, Ms Bell said.
Commonwealth Bank jumped 93 cents to $75.48, ANZ rose 40 cents to $24.30, NAB gained 36 cents to $27.52 and Westpac gained 39 cents to $31.15.
Retail heavyweight Wesfarmers rose $1.14 to $42.20 after its two biggest divisions, Coles and Bunnings, reported strong third quarter sales.
Coles’ solid performance came at the expense of Woolworths, which fell 23 cents to $21.77.
NIB shares jumped 43 cents to $4.28 after the health insurer upgraded its annual guidance.
KEY FACTS:
* At 1625 AEST, the benchmark S&P/ASX 200 index was up 56.7 points, or 1.09 per cent, at 5,272.7 points.
* The broader All Ordinaries index was up 55.2 points, or 1.05 per cent, at 5,336.4 points.
* The June share price index futures contract was up 45 points at 5,250 points, with 36,677 contracts traded
* National turnover was 3.97 billion securities traded, worth $7.21 billion, according to preliminary figures.
