THE sharemarket finished firmer after vaccine maker CSL injected some confidence into things and European Union finance ministers reached a Greek debt bailout deal.
The benchmark S&P/ASX 200 Index closed 32.6 points, or 0.74 per cent, higher at 4456.8, while the broader All Ordinaries gained 29.9 points, or 0.67 per cent, to 4473.4.
The market's positive run continued after eurozone finance ministers and the International Monetary Fund agreed to release ?43.7 billion ($A54.2 billion) in loans to Greece.
Bell Direct equities analyst Julia Lee said the news helped buoy the local market. "It's been a positive," she said.
Elsewhere in the region the Shanghai Composite Index fell below the 2000-point mark for the first time since 2009.
"That takes the Chinese market to levels not seen since the global financial crisis," Ms Lee said, adding that the underperformance stirred concerns about a slowdown in economic growth in China, one of Australia's key trading partners.
But investors instead took their positive cues from CSL, which upgraded its profit guidance. The shares rose to an all-time high of $50.55 in intraday trading and closed at $50.01.
This was after CSL had forecast that profit after tax would grow by 20 per cent this financial year, up from the 12 per cent forecast made in August.
CSL's strong rise added six points to the market.
Healthcare stocks also vastly outperformed other sectors, rising 4 per cent.
Retail shares were under pressure even though Harvey Norman chairman Gerry Harvey said he expected Christmas sales to be stronger.
Following its annual meeting, Harvey Norman shares shed 1.5? to touch $1.83 but Ms Bell said investors were squaring profits after a strong week for retail stocks.
Among the big banks, Commonwealth Bank added 7? to $59.22, ANZ gained 24? to $23.81, National Australia Bank advanced 13? to $23.83 and Westpac put on 13? to $24.89.
In the resource sector, global miner BHP Billiton was 19? richer at $34.20 and Rio Tinto found 57? to $57.78.
The positive news out of Greece also gave the dollar a lift. Late on Tuesday it was trading at US104.80?, up from US104.53? on Monday.
The spot price of gold in Sydney was $US1750.04 an ounce, down US11? from Monday's close.
National turnover was 1.441 billion securities worth $3.712 billion.
On Wall Street on Monday, the Dow Jones shed 42.31 points, or 0.33 per cent, to 12,967.37.
Frequently Asked Questions about this Article…
How did the Greece bailout deal affect the Australian sharemarket today?
The Greece bailout deal helped lift investor sentiment — eurozone finance ministers and the IMF agreed to release €43.7 billion (A$54.2 billion) in loans to Greece, and that positive news helped buoy the local market and contributed to firmer trading on the ASX.
Why did CSL's profit upgrade give markets a confidence boost?
CSL upgraded its profit guidance, forecasting profit after tax to grow by 20% this financial year (up from a 12% forecast in August). Its shares hit an intraday all-time high of $50.55 and closed at $50.01, and the strong performance added to overall market gains and investor confidence.
What were the closing results for the major Australian indices (S&P/ASX 200 and All Ordinaries)?
The S&P/ASX 200 closed 32.6 points, or 0.74%, higher at 4456.8, while the broader All Ordinaries gained 29.9 points, or 0.67%, to 4473.4.
How did healthcare and retail stocks perform on the day?
Healthcare stocks outperformed other sectors, rising about 4%, helped by CSL. Retail shares were under pressure despite Harvey Norman chairman Gerry Harvey saying he expected stronger Christmas sales; Harvey Norman shares fell about 1.5% to $1.83 as investors squared profits after a strong run for the sector.
What happened with Australia's big banks and resource stocks during the trading session?
Big banks were firmer: Commonwealth Bank closed at $59.22, ANZ at $23.81, National Australia Bank at $23.83 and Westpac at $24.89. In resources, BHP Billiton closed at $34.20 and Rio Tinto at $57.78.
Should everyday investors be worried about the Shanghai Composite falling below 2000 points?
The Shanghai Composite did fall below the 2,000-point mark for the first time since 2009, which raised concerns about a potential slowdown in Chinese economic growth — a key consideration for Australian investors because China is a major trading partner. It’s a reminder to monitor global economic indicators alongside domestic news.
How did currency and commodity prices move, and what might that mean for investors?
The Australian dollar lifted on the Greece news, trading at US104.80 (up from US104.53). The spot price of gold in Sydney was $US1750.04 an ounce, down about US$11 from Monday’s close. Currency and gold moves can affect exporters, miners and portfolio hedging decisions.
What was the overall market turnover and how did US markets perform overnight?
National turnover was 1.441 billion securities worth $3.712 billion. On Wall Street, the Dow Jones fell 42.31 points, or 0.33%, to 12,967.37 overnight.
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