Australian share prices bounced back from recent losses to close 4.6 percent higher on Monday after the US Federal Reserve acted to stabilise markets shaken by the sub-prime mortgage market crisis, dealers said.
They said the Australian market gained from US Federal Reserve's decision to cut the interest rate on loans it makes to commercial banks as well as a rebound on Asian markets. The benchmark S&P/ASX 200 index gained 261.6 points to 5,932.6 while the broader All Ordinaries added 256.2 points to 5,926.5.
Turnover was 2.17 billion shares worth 7.26 billion dollars (5.73 billion US) with winners leading losers 1,160 to 235 and 238 stocks closing unchanged.
Dealers said major stocks in the banking and resources sectors led the market. Major miners made solid gains; BHP Billiton rose 2.46 dollars, or 7.6 percent, to close at 34.90 dollars while Rio Tinto gained 3.89 dollars, or 4.8 percent, to 85.05 dollars.
Among banking stocks, National Australia Bank added 1.81 to 39.79 while shares in the Commonwealth Bank gained 0.86 to 53.36 dollars. Leading investment bank Macquarie, which has suffered recent heavy losses, gained 6.01 dollars or 9.3 percent to 70.75 dollars.
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