The share market has closed higher for a sixth straight session as investors see better value in the equity market than in bonds.
The big banks led the market higher as investors took profits from resources stocks following their recent good run upwards.
It’s very pleasant to see six days in a row,” IG market strategist Evan Lucas said.
“There’s no doubt a lot of people have money that they are trying to put somewhere – the bond market is so full and so narrow that it’s cheaper on a valuation basis to look at the equity markets rather than the bond market.”
Mr Lucas warned however that it was very rare to see the share market put together seven positive sessions in a row.
The market’s direction in the next day or so is likely to be determined by the performance of US markets, a possible cut to interest rates in the UK and China’s quarterly economic growth figures.
Among the major banks, Commonwealth Bank added 72 cents to $75.61, ANZ gained 25 cents to $24.75, Westpac rose 28 cents to $29.80 and National Australia Bank was 33 cents higher at $25.67.
In resources, BHP Billiton fell 24 cents to $20.34 and Rio Tinto eased 58 cents to $50.20.
Iron ore miner Fortescue Metals slumped 18 cents, or 4.1 per cent, to $4.22 despite surpassing its full year production guidance of 165 million tonnes following unseasonably mild weather.
Toll roads operator Transurban lost four cents to $11.8 after it reported a 17 per cent rise in its fourth quarter revenue.
KEY FACTS:
* On Thursday, the benchmark S&P/ASX 200 index was up 23.1 points, or 0.43 per cent, at 5, 411.6 points.
* The broader All Ordinaries index was up 21.5 points, or 0.39 per cent, at 5, 491.8 points.
* The September share price index futures contract was up 34 points at 5,383 points, with 26,475 contracts traded.
* The spot price of gold in Sydney at 1700 AEST was $US1,332.70 per fine ounce, down $US8.60 on Wednesday’s price of $US1,341.30.
* National turnover was 2.23 billion securities traded, worth $3.77 billion.
