Australian share prices rose 0.78 percent to chalk up another record finish on Monday with the key resource stocks once more leading the way, dealers said. They said support for top miners BHP Billiton and Rio Tinto was the driving force for the record-breaking performance, with European investors believed to be major buyers of the two stocks.
The key S&P/ASX 200 ended up 49.5 points at 6,400.6, beating the previous record close of 6,397.0 set on June 20. The broader All Ordinaries Index rose 46.5 points to 6,429.5, also beating the previous record close of 6,421.1 set on June 20.
Turnover was 1.55 billion shares worth 5.4 billion dollars (1.3 billion US), with falls slightly outnumbering rises 669 to 639 and 319 stocks unchanged despite the headline index gains.
Reynolds & Co private client advisor Michael Heffernan said a lot of the buying in global miners BHP Billiton and Rio Tinto was traced to European investors. "I think they've suddenly woken up to the fact that these stocks are inexpensive," he said.
Volumes were restrained by the lack of local economic data releases and wider corporate news releases. "Nothing spectacular but just nice, steady buying," said Heffernan. Resource stocks rose after BHP Billiton hit fresh record highs, with investors seeing the index leader's price as attractive.
BHP Billiton added 1.29 dollars or 3.44 percent to a record finish of 38.83 dollars while Rio Tinto rose 1.35 dollars or 1.32 percent to a record 103.40. Woodside gained 14 cents to 47.14 dollars, Santos was up 37 cents at 14.08 dollars and Oil Search added seven cents to 4.20 dollars after crude oil prices climbed to a 10-month high Friday.
Wesfarmers closed up 0.30 at 41.35, Coles added three cents to 15.13 dollars and rival Woolworths jumped 55 cents to 29.05 dollars. Banka were mixed amid concerns over the outlook for interest rates. National Australia Bank slipped 0.04 to 40.10, St George shed 0.19 to 35.96 but Commonwealth Bank gained 0.78 to 56.07 and ANZ rose 0.9 to 29.48 with Westpac up 0.15 at 26.55 dollars.
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