Australian share prices soared 3.16 percent on Monday on the back of strong commodities prices and positive comments from the US Federal Reserve about prospects for a global recovery, dealers said. The benchmark S&P/ASX200 index finished up 135.5 points at 4,426.1, its highest since July 14, while the broader All Ordinaries lifted 128.5 points to 4,434.2.
Turnover was 2.63 billion shares worth 5.53 billion dollars (4.59 billion US), with 769 stocks up, 358 down and 314 steady. CMC Markets' senior dealer Matt Lewis said the index was buoyed by US Federal Reserve chief Ben Bernanke's assessment that global recovery prospects "appear good." "That momentum and confidence, particularly the comments from Ben Bernanke, have flowed into our market today," Lewis said.
He added that a five percent rally in the copper price helped mining giant BHP Billiton close up 1.57 dollars at 38.18 dollars, with rival Rio Tinto rising 2.67 dollars to 58.98. In the banking sector, Westpac closed up 99 cents at 23.73, ANZ jumped 78 cents to 19.81, NAB advanced 1.00 dollar to 26.68 and the Commonwealth Bank rose 1.06 dollars to 44.61.
Major retailers also gained with Coles owner Wesfarmers up 1.16 to 26.31 and Woolworths rising 52 cents to 28.01. Fairfax Media rose five cents to 1.46 after posting a 380 million dollar net annual loss but indicated that declines in advertising revenue may have bottomed out.
Qantas Airways, which last week posted an 88 percent drop in annual net profit to 117 million dollars, rose 12 cents to 2.64 and discount carrier Virgin Blue was steady at 38.5 cents. Telstra closed down 11 cents at 3.36 dollars after a government fund last week announced it was selling 2.4 billion dollars' worth of shares in the company.
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