The Australian share market has closed at a 16-month high thanks partly to offshore markets’ Trump-fuelled rallies, with strong gains locally coming from retailers and banks.
The benchmark S&P/ASX 200 index closed 0.52 per cent at 5,591.1 points on Tuesday – a level not seen since August 2015.
Morgans Brisbane senior private client adviser Bill Chatterton said the local bourse has tracked Wall Street higher thanks to a seasonal “Santa Claus rally” and a boost from upbeat sentiment surrounding US President-elect Donald Trump’s administration.
“The market has been quite positive across the board with the only weakness coming from the materials sector because commodity prices have pulled back,” Mr Chatterton said.
“There’s a Santa rally and the Trump factor is creating positive sentiment. He has made some sensible appointments – from business to key military people – and it is giving markets some confidence and that is washing over here.”
Minutes from the Reserve Bank of Australia’s board meeting released on Tuesday indicated the central bank was concerned about domestic wage growth, however Mr Chatterton said the minutes appeared to have had little effect on the share market.
The retail sector posted strong gains with Coles supermarkets owner Wesfarmers up 47 cents, or 1.1 per cent, at $42.29, and rival Woolworths 41 cents, or 1.8 per cent, higher at $42.29.
The Commonwealth Bank’s Business Sales Indicator, released overnight, found spending across the economy has grown at its fastest rate in seven years in the lead-up to Christmas.
The big four banks also closed higher with Commonwealth Bank up 84 cents, or 1.03 per cent, National Australia Bank 32 cents, or 1.06 per cent, higher at $30.40, ANZ adding 19 cents, or 0.63 per cent, at $30.12, and Westpac gaining 16 cents ,or 0.49 per cent to $32.49.
Energy stocks ended lower, with Woodside Petroleum shedding 16 cents to $30.94, Oil Search dropping nine cents, or 1.3 per cent, to $6.81 and Santos falling one cent, or 0.25 per cent, to $3.97.
Global miner BHP Billiton declined 18 cents, or 0.72 per cent, to $24.91, Rio Tinto was down 29 cents, or 0.49 per cent, $59.26 and Fortescue Metals was six cents, or 1 per cent, lower at $5.94.
One of the biggest losses among large-cap stocks came from dairy company Bega Cheese which fell 28 cents or 6.73 per cent, to $3.88.
KEY FACTS:
* The benchmark S&P/ASX 200 index closed 29 points, or 0.52 per cent, higher at 5,591.1 points.
* The broader All Ordinaries index was up 27.2 points, or 0.48 per cent, at 5,640 points.
* The March share price index futures contract was up 28 points, or 0.51 per cent, at 5,556, with 29,321 contracts traded.
* National turnover was 2.6 billion securities traded, worth $6 billion.
