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The Australian share market has rebounded from last week's plunge, led by the banks, after the Federal Government guaranteed all deposits for the next three years.
At 1018 AEDT, the benchmark S&P/ASX200 was up 209.2 points, or 5.28 per cent, at 4169.9, while the broader All Ordinaries gained 196.7 points, or 4.99 per cent, to 4136.2.
On the Sydney Futures Exchange, the December share price index futures contract surged 144 points to 4197, on volume of 14,013 contracts, after rising as high as 4228 shortly before market open.
Prime Minister Kevin Rudd announced yesterday that the federal government would guarantee deposits of any size in Australian banks for the next three years.
The government has also guaranteed all term wholesale funding by Australian banks operating in international credit markets, and will buy a further A$4 billion in mortgage backed securities, effectively pumping that money into the market through non-bank lenders.
Banking stocks surged. National Australia Bank jumped A$2.25, or 10.82 per cent, to A$23.05, Commonwealth Bank rose A$2.51, or 6.35 per cent, to A$42.06 and ANZ Banking Group increased A$1.42, or 9.28 per cent, to A$16.72.
Westpac climbed A$1.70, or 8.42 per cent, to A$21.89 and its takeover target St George Bank added A$2.31, or 9.17 per cent, to A$27.50.
Investment firm Macquarie Group jumped A$3.24, or 11.36 per cent, to A$31.76.
On Friday, the ASX200 index plunged 8.34 per cent, the biggest fall since the index was created in 1993, to finish a week in which about A$188 billion of value disappeared from market capitalisation.
- AAP
