Aussie market hits nine month high

File photo / NZ Herald

The Australian sharemarket hit a nine-month high to close stronger yesterday, driven by positive sentiment and gains in the resources sector.

The benchmark S&P/ASX200 index closed up 32.8 points, or 0.68 per cent, at 4834.6 points, while the broader All Ordinaries index gained 32.6 points, or 0.66 per cent, to 4944.2 points. It was the S&P/ASX200 index's highest close since April 28 last year, when it finished at 4822.8 and the highest close for the All Ords since April 22, when it ended at 4936.8.

On the ASX 24, the March share-price index futures contract was up 42 points at 4821, with 28,126 contracts traded.

Burrell Stockbroking adviser Daniel Manley said the market was being led by miners after a reasonably strong lead from Wall St overnight.

"There's some pretty good strength in the miners, which is boding well for the majority of the market," he said. "Obviously they are a couple of the biggest stocks that we have on the index, so good days there is pushing our market a little bit higher."

The major mining stocks ended mixed. BHP closed up A43c at A$46.05, while Rio Tinto was A82c higher at A$87.62. Fortescue ended lower after its 8 per cent rally on Tuesday, when it reported that higher iron ore prices boosted its operating margins in the December quarter. It closed down A8c, or 1.1 per cent, at A$7.19.

Manley said the banks had also performed reasonably well, buoyed by broadbased buying. "What's pushing them is the sentiment is quite bullish at the moment and that's why the gains are quite broad," he said.

Banking stocks closer higher.

ANZ gained A25c, or 1.09 per cent, to A$23.24, Westpac added A21c to A$22.61, Commonwealth rose by A32c to A$51.76 and NAB was A13c higher at A$24.40.

Retailers ended strongly despite the release of a survey by Westpac-Melbourne Institute Index of Consumer Sentiment which showed the negative impact of the Queensland floods on consumer sentiment nationwide.

JB Hi-Fi ended up A69c, or 3.66 per cent, at A$19.55, Harvey Norman rose A11c, or 3.54 per cent, to A$3.22, David Jones rose A14c, or 2.98 per cent, to A$4.84, and Myer was up A6c, or 1.65 per cent, at A$3.69.

- AAP