Australian shares gained 1.5 percent to a record close on Monday, helped by the mining sector as well as merger and acquisition speculation, dealers said. The benchmark S&P/ASX 200 added 93.6 points or 1.5 percent to end the day at a record 6,451.5, while the broader All Ordinaries index gained 89.9 points to close at 6,461.1, also a new high.
Turnover was light - 1.79 billion shares worth 6.0 billion dollars (5.2 billion US) were traded - but dealers said investors left credit market woes behind to snap up stocks across all sectors. Gainers beat losers 714 to 527, while 339 stocks were unchanged, as the market beat previous highs set on July 24 - just before concerns about the US subprime mortgage market rattled markets around the world.
"It was one of those days when everyone had a smile but I don't think anyone would be brave enough to say the market volatility is over," said Andrew Sekley, head of Australian equities at Intersuisse.
The major resources stocks led gains with the world's largest miner BHP Billiton rising 2.14 dollars or 5.2 percent to a record 43.14. Competitor Rio Tinto also hit a record close, up 3.47 dollars or 3.4 percent to 106.68. Dealers said merger and acquisition activity added momentum to the market. "M & A activity is always grist for the mill," Sekley said.
Consolidated Minerals closed up 12 cents at 5.03 as private equity firm Pallinghurst Resources and Ukrainian metals group Palmary Enterprises battle for control of the manganese miner. Iron ore miners Gindalbie Minerals and Sundance Resources said they had agreed to merge. Gindalbie lost 6.5 cents to close at 1.635 while Sundance added 6.5 cents to 80.5 cents.
The major banks were stronger with National Australian Bank adding 80 cents, or 2.1 percent, to 38.29 and Commonwealth Bank putting on 58 cents, or 1.1 percent, to close at 56.22. ANZ added 31 cents to 27.45 and Westpac Banking was 16 cents higher at 27.45.
Comments
Comments are closed.