THE sharemarket gained almost 2 per cent as investors remained optimistic that European leaders were approaching a resolution of the euro zone debt crisis.
CommSec market analyst Steven Daghlian said investors even in the US were turning their focus to the European debt crisis, with confidence kept afloat by comments from French and German leaders on Wednesday that they were determined to keep debt-ridden Greece in the euro zone.
At the close, the benchmark S&P/ASX 200 Index was up 77.7 points, or 1.9 per cent, at 4149.4.
RBS Morgans Ipswich manager Tony Russell said investors were typically cautious about what would happen overseas while the local market was closed at the weekend.
"We've heard a lot of rhetoric and no clear decisions have come through, and I think that will still maintain this volatility that we've seen over the past three to four weeks," he said.
Mr Russell said money was flowing back into equities, with the resource sector bouncing back after feeling the brunt of recent market losses. Among the miners, BHP Billiton rose 60?, or 1.6 per cent, to $38.23, while Rio Tinto gained $1.89, or 2.7 per cent, to $71.27.
Energy stocks were the strongest performers to the close, with the sector gaining 2.9 per cent after oil prices soared on overseas markets. Woodside Petroleum gained $1.04, or 3.1 per cent, to $34.25, Oil Search rose 15? to $6.10 and Santos was 24? higher at $11.45.
The best-performing stock of the top 100 companies on the ASX was property company Goodman Group, up 7.5 per cent at 64.5?. ConnectEast Group was the worst, falling 2?, or 3.9 per cent, to 49?.
Turnover was 2.44 billion shares, changing hands for $5.30 billion, with about eight out of 10 stocks rising.
On the ASX 24, the December share price index futures contract rose 73 points to 4170, with 34,997 contracts traded.
Gold closed in Sydney at $US1765.89 an ounce, down $US44.64, after gold fell 2 per cent to three-week lows on overseas markets on Thursday.
Frequently Asked Questions about this Article…
How did the ASX 200 perform today and what drove the market rally?
The S&P/ASX 200 rose 77.7 points (about 1.9%) to 4,149.4. Investors were optimistic that European leaders were moving toward a resolution of the euro‑zone debt crisis—comments from French and German leaders about keeping Greece in the euro helped lift sentiment.
Did energy stocks lead the market gains and why were they strong?
Yes. Energy stocks were the strongest performers, with the sector up about 2.9%. The rally was driven by a surge in oil prices on overseas markets, which boosted names across the sector.
How did major oil and gas companies perform — Woodside, Oil Search and Santos?
Woodside Petroleum gained $1.04 (about 3.1%) to $34.25. Oil Search rose to $6.10, and Santos increased to $11.45 — all reflecting the broader lift in energy and higher oil prices.
What happened with large miners like BHP Billiton and Rio Tinto?
The resource sector bounced back. BHP Billiton rose about 1.6% to $38.23, while Rio Tinto gained $1.89 (around 2.7%) to $71.27.
Which stocks were the best and worst performers among the ASX top 100?
Property company Goodman Group was the best performer among the top 100, climbing 7.5%. ConnectEast Group was the weakest, falling about 3.9%.
How active was trading — what were turnover and market breadth like?
Trading was fairly active: turnover was 2.44 billion shares, worth about $5.30 billion, and roughly eight out of 10 stocks rose on the day.
Did ASX futures reflect the same positive momentum?
Yes. On the ASX24, the December share price index futures contract rose 73 points to 4,170, with 34,997 contracts traded, indicating similar optimism in derivatives markets.
What happened to gold prices during the session?
Gold closed in Sydney at US$1,765.89 an ounce, down US$44.64, after gold fell about 2% to three‑week lows on overseas markets.
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