The Australian share market has hit its highest level in two years amid investor optimism after events in Syria did not escalate and a range of other positive economic developments.
The benchmark S&P/ASX200 jumped 0.86 per cent to 5912.9 – the highest level since April 2015 – with miners and the big four banks leading the way.
CMC chief market analyst Ric Spooner said investors have poured into the market amid optimism that the US tensions with Syria, Russia and North Korea won’t escalate into conflict.
“It’s been a good, strong day obviously, up 48 points and into new highs for the new year,” he told AAP.
“To some extent just the fact that investors are relieved that there has been a negative reaction to Syrian missile strikes and US warships off the Korean peninsula.”
Mr Spooner said the big four banks found additional support from investor optimism about their financial reports due in May.
Commonwealth Bank jumped 72 cent, or 0.85 per cent, to $85.49, National Australia Bank was up 20 cents, or 0.62 per cent, to $32.68, Westpac gained 21 cents, or 0.61 per cent, to $34.45 and ANZ added 29 cents, or 0.92 per cent, to $31.70.
Mr Spooner said a pick-up in global manufacturing activity, coming after recent falls in mining shares, helped resource stocks make gains.
Rio Tinto jumped 83 cents, or 1.38 per cent, to $60.84, while rival BHP Billiton received an unexpected boost after activist hedge fund Elliott proposed a restructure, including an end to BHP’s dual listing, that it claims would boost shareholder value.
BHP shares surged $1.14, or 4.64 per cent, to $25.73 on the news – an eight week high.
There was also some movement in the telecommunications sector after junior mobile group Amaysim announced the surprise acquisition of Click Energy for $120 million, aimed at extracting more money from cost-conscious households.
Amaysim shares finished the session up 10 cents, or 5.4 per cent, at $1.94.
Meanwhile, the Australian dollar has closed below 75 US cents for the first time since January, dropping to 74.92 US cents from 75.24 cents on Friday.
Mr Spooner said the local unit was driven lower by lower commodity prices and signs of softness in domestic economy
ON THE ASX:
* The benchmark S&P/ASX200 rose 50.4 points, or 0.86 per cent, to 5,912.9 points.
* The broader All Ordinaries index jumped 46.3 points, or 0.78 per cent, to 5,948.9 points.
* The June SPI200 futures contract was up 47 points, or 0.8 per cent, at 5,899 points.
* National turnover was 2.3 billion securities traded, worth $5.4 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 74.88 US cents, down from 75.24 US cents on Friday
* 83.32 Japanese yen, down from 83.14 yen
* 70.77 euro cents, down from 70.67 euro cents
* 60.42 British pence, down from 60.36 pence
* 107.82 New Zealand cents, down from 107.91 NZ cents
GOLD: The spot price of gold in Sydney at 1700 AEST was $US1,253.94 per fine ounce, down $9.32 from $US1,263.26 on Friday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 5.25 per cent March 2019, 1.6549 pct, down from 1.652pct on Friday.
* CGS 4.25pct April 2026, 2.5186 pct, up from 2.499pct
Sydney Futures Exchange prices:
* June 2017 10-year bond futures contract at 98.180 (implying a yield of 1.820pct), up from 97.420 (2.580pct) on Friday.
* June 2017 3-year bond futures contract at 97.395 (2.605pct), down from 98.120 (1.880pct)
