The Australian share market has closed higher in a shortened Christmas eve trading session, with investors buoyed by more encouraging news from the United States.
“It looks like that Santa rally that we’ve been hoping for has come through for local investors,” CommSec market analyst Juliette Saly said.
“The last four sessions that we’ve seen have been a great boost for investor sentiment, really on the back of strong global growth figures that we saw coming through out of the US on Friday.”
US stocks jumped to new highs overnight after the International Monetary Fund praised the Fed Reserve’s move to cut its stimulus measures, and said it has a “much stronger outlook for 2014” in the US economy.
There was also an 0.5 per cent increase in US consumer spending in November, the second month in a row to see a rise.
The consumer spending data follows Friday’s release of revised estimates for third quarter gross domestic product growth in the US to an annual rate of 4.1 per cent, up from 3.6 per cent.
Ms Saly said the volume of trading on the Australian market was light, but the retail sector had performed well.
Coles owner Wesfarmers gained 26 cents to $43.79, Woolworths added nine cents to $33.70, David Jones put on five cents to $2.99, Myer added five cents to $2.73 and Harvey Norman gained five cents to $3.15.
The banks also gained ground, with Commonwealth Bank up 40 cents to $77.16, National Australia Bank rose 16 cents to $34.78, Westpac added 22 cents to $32.14, and ANZ climbed 18 cents to $32.13.
The resources sector was more subdued, with BHP Billiton edging 13 cents higher to $37.29 and Rio Tinto dipped slipping six cents to $66.84.
KEY FACTS
* The benchmark S&P/ASX200 index was up 35.3 points, or 0.67 per cent, at 5,327.2 points.
* The broader All Ordinaries index was up 33.9 points, or 0.64 per cent, at 5,325.4 points.
* The March share price index futures contract was 47 points higher at 5,316 points, with 12,706 contracts traded.
* National turnover was 880 million securities worth $1.98 billion.
