The share market is enjoying its strongest session in eight weeks on the back of Rio Tinto’s massive shareholder returns, rising oil prices and optimism from a ceasefire agreement in Ukraine.
The All Ordinaries index is up almost 1.9 per cent at noon, which if maintained will be its strongest daily gain since December 22.
“We saw a big jump in oil – so the energy space is driven up,” IG market analyst Evan Lucas said.
“Also the Ukrainian peace deal certainly helps oil – it takes the risk out of it.”
Oil and gas explorer Santos was up 26.5 cents at $7.855, Woodside had added 72 cents to $34.56 and Oil Search was 28 cents higher at $8.27.
Rio Tinto was up $3.195, or 5.3 per cent, at $63.095 after it announced late on Thursday a $US2 billion share buyback and a large increase in dividends.
“The market really expects BHP to do something similar – so you’re getting a good kick in mining,” Mr Lucas said.
BHP had added $1.12, or 3.7 per cent, to $31.82 and Fortescue Metals was seven cents higher at $2.52.
Mr Lucas said Reserve Bank boss Glen Steven’s comments that more than one more rate cut may be needed if unemployment continues to rise had lifted the banks and Telstra.
Commonwealth Bank was up $1.21 at $92.39, National Bank had added 58 cents to $37.29, ANZ was up 54 cents at $35.52 and Westpac had gained 70.5 cents to $37.395.
Telstra was up 13 cents at $6.58.
KEY FACTS
* At 1221 AEDT on Friday, the benchmark S&P/ASX200 index was up 110.45 points, or 1.92 per cent, at 5,854.1.
* The broader All Ordinaries index was up 105.9 points, or 1.86 per cent, at 5,813.6.
* The March share price index futures contract was up 84 points at 5,801 with 20,469 contracts traded.
* National turnover was 648 million securities worth $2.2 billion.
