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MELBOURNE - The Australian stock market closed three per cent higher today amid strong gains from the banks as confidence returned to the financial sector after a strong lead from Wall Street.
At the close, the benchmark S&P/ASX200 index was 170.6 points, or 3.14 per cent, higher at
5600.3, while the broader All Ordinaries gained 160.1 points, or 2.91 per cent to 5664.2.
At 1615 AEST on the Sydney Futures Exchange, the June share price index contract was 173 points higher at 5649, on a volume of 27,160 contracts.
CMC Markets senior dealer Dominic Vaughan said the local market surged higher following strong gains in the US with the banking sector leading the charge.
"It is mainly from the confidence in the US overnight and I think the expectations are that the financial sector might get another strong night tonight," Mr Vaughan said.
"The banking sector has been savaged over the last six months but there is a little bit more confidence back in that sector and they have been one of the main drivers today.
"The four majors are virtually up six per cent right across the board."
ANZ put on $1.45, or 7.23 per cent to $21.50, National Australia Bank gained $1.72, or 6.2 per cent, to $29.45, Commonwealth Bank added $2.24, or 5.38 per cent, to $43.90 and Westpac picked up $1.46, or 6.54 per cent, to $23.78.
The market got off to a strong start following a solid lead from Wall Street on Friday, with the Dow Jones industrial average picking up 228.87 points to close at 12,849.36.
The retailers were mixed, with Woolworths gaining 78 cents to $28.77, David Jones putting on 13 cents to $3.60, Harvey Norman finding three cents to $3.74, while Wesfarmers was in a trading halt having last traded at $36.97.
Wesfarmers has turned to equity to refinance most of the bridging loan set up to support its $20 billion acquisition of Coles Group, following turbulence in global credit markets.
James Hardie Industries NV added 16 cents to $6.09 and has declined to comment on reports the company is planning to move its corporate domicile from The Netherlands to the United States.
Asciano gained 15 cents to $4.10 after the company was chosen as preferred bidder for a $7 billion project in Saudi Arabia, as part of a consortium member of the so-called Tarabot group.
Dexion put on one cent to $1.70 after the storage solutions company said the outlook for calendar 2008 is positive after a year of consolidation and integration in the business.
The media sector was stronger, with News Corp adding 35 cents to $20.18, its non-voting shares putting on 41 cents to $19.62, Fairfax finding three cents to $3.51 and Consolidated Media Holdings picking up six cents to $3.76.
The big miners were stronger, with BHP Billiton adding $1.57 to $43.99 and rival Rio Tinto gaining $4.61 to $144.55.
The energy sector was stronger, with Woodside adding 76 cents to $58.10, Santos finding $1.12 to $16.89 and Oil Search picking up eight cents to $5.20.
Macarthur Coal put on $1.95 or 14.72 per cent to $15.20 after the supplier of more than a third of the world's pulverised coal said it had received an approach from a third party.
The spot price of gold was lower and at 1623 AEST was trading US$918.75 an ounce, down US$25.10 an ounce from Friday's local close of US$943.85 an ounce.
The gold miners were weaker, with Newcrest dropping 73 cents to $32.61, Newmont falling 11 cents to $4.95 and Lihir losing five cents to $3.25.
Wasabi Energy was the most traded stock on the market, with 141.96 million shares changing hands collectively worth $2.87 million.
The energy group added half a cent to close at 2.3 cents.
Preliminary market turnover reached 1.45 billion, worth a total value of $5.22 billion, with 742 stocks moving up, 452 stocks moving down and 325 unchanged.
- AAP
