Australian shares gained 0.5 percent on Monday to notch a three-month high, with industrial equipment maker Bradken starring with an 11.2 percent surge after posting a 49 percent increase in its full-year profit. Companies posting financial results went their own way, but the underlying trend in the market was determined by an improvement in investors' appetite for risk due to raised hopes that Europe will come to grips with its debt crisis.
"We are starting to see a bit of rotation away from defensives as Europe is rallying a bit more," Tribeca portfolio manager Sean Fenton said. But he added sentiment remains cautious. "It is the most defensive market we have ever seen. There is a strong hunger for yield and relative safety." The benchmark S&P/ASX 200 index rose 19 points to 4,291.6, its best closing level since May 14. The index gained 1.2 percent on Monday.
New Zealand's benchmark NZX 50 index climbed 0.6 percent to 3,584.8. Shares in Australia's largest construction company, Leighton Holdings, slipped 1.5 percent to A$16.48 after it maintained its full-year outlook.
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