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MELBOURNE - The Australian share market roared back to life today buoyed by a renewed Wall Street after global central banks overnight pumped as much as US$180 billion (A$228 billion) into money markets to combat the worst financial upheaval since the Great Depression.
The major banks led the
surge on the local bourse.
At the 1615 AEST close, Australia's benchmark S&P/ASX200 index had gained 196.8 points, or 4.27 per cent, to 4804.1, while the broader All Ordinaries index had risen 188.8 points, or 4.06 per cent, to 4840.7.
The December share price index futures contract was up 191 points to 4858, on a volume of 47,317 contracts, according to preliminary calculations.
CMC Markets head of trading James Foulsham said the cash injection by the central banks and other moves to shore up the US financial sector had helped calm investors and financial stocks in particular had benefited.
"It's restored confidence to the market in the short term," Mr Foulsham said.
But long-term stability was still uncertain.
Mr Foulsham said stocks today had been boosted by investors trying to cover short positions.
Among the major banks, National Australia Bank soared $3.40, or 17.35 per cent, to $23.00; Commonwealth Bank lifted $2.62, or 6.54 per cent, to $42.70; ANZ jumped $2.26, or 14.63 per cent, to $17.71; and Westpac jumped $1.54, or 7 per cent, to $23.54.
Investment bank Macquarie Group rocketed $9.85, or 37.81 per cent, to $35.90 after analysts said the bank's liquidity and capital positions were strong.
Babcock & Brown ascended 3.5 cents, or 4.61 per cent, to 79.5 cents.
Banking and insurance company Suncorp Metway leapt 75 cents to $9.10 as the company completed the underwriting on its dividend reinvestment plan two weeks early.
In the resources sector, global miner BHP Billiton was 40 cents richer at $35.40 and Rio Tinto improved $3.10 to $101.50.
Iron ore miner Fortescue Metals Group added 50 cents to $5.70 despite reporting an annual bottom-line net loss and saying it would not provide a forecast for the current year because it may prejudice "the interests of the company".
Copper and gold miner Straits Resources was off 30 cents at $3.30 after it called off a planned demerger of its 47 per cent-held subsidiary, coal miner Straits Asia Resources Ltd, due to global market volatility.
Oil and gas producer Woodside Petroleum was up $2.66 at $54.06, and Santos rose 53 cents to $18.28.
On Wall Street overnight, the Dow Jones Industrial Average climbed 410.03, or 3.86 per cent, to 11,019.69.
In the gold sector, Newmont shed 55 cents to $4.92, Newcrest eased 65 cents to $23.85 and Lihir dipped three cents to $2.45.
Philippines-focused gold producer Medusa Mining added 10 cents at $1.05 after Hong Kong-based merchant banking and asset management group Crosby Capital launched an off-market $182 million cash takeover bid.
The price of gold in Sydney at 1627 AEST today was US$849.10 per fine ounce, down US$6.80 on yesterday's close of US$855.90.
In the media sector, News Corp was 59 cents stronger at $16.90, while its non-voting stock put on 57 cents at $16.48.
Consolidated Media picked up three cents at $2.82 and Fairfax was 15 cents better off at $2.88.
Telco Telstra rose four cents to $4.13 and Optus-owner Singapore Telecommunications lifted eight cents to $2.89.
In the retail sector, Wesfarmers, which owns Coles, jumped $1.81 to $30.80 and Woolworths sagged 71 cents to $27.53.
Among other stocks, shopping centre manager Centro Properties Group was 1.7 cents lower at six cents after it said its managed funds had agreed to sell four shopping centres for $157.5 million.
The top-traded stock by volume was Macquarie Infrastructure Group, with 98.9 million shares worth $200.08 million changing hands. Macquarie Infrastructure was up 31 cents at $2.26.
Preliminary national turnover was 2.09 billion shares worth $9.28 billion, with 805 stocks up, 306 down and 285 unchanged.
- AAP