The sharemarket hit its highest level since October yesterday a nine-month high after Chinas central bank said it planned to increase the supply of cash to the worlds second-biggest economy.
Australian resource stocks, which account for about a quarter of the local bourse by market capitalisation, reacted positively to the news, which in turn pulled the market higher.
The benchmark ASX 200 index closed up 14 points, or 0.3 per cent, at 4362.7, while the broader All Ordinaries index was up 14.1 points, or 0.3 per cent, at 4441.3.
The head of research at ATI Asset Management, David Liu, said investors had enjoyed some strong days from the miners and energy companies, with the release of positive quarterly production reports from BHP Billiton, Rio Tinto and Woodside Petroleum, as well as an update from Fortescue Metals.
Looking at the flow of funds over the past few days, theres definitely been a move into BHP Billiton and Rio and some of the large miners, thats probably the most significant thing, Mr Liu said.
The consensus trade has, until recently, been underweight resources and overweight financials. Thats coming back a little bit.
BHP shares climbed 40? to $35.50, while Rio Tinto rose 10? to $66.60. Fortescue gained 9? to $6.02, despite third-quarter iron ore production falling below guidance following the cyclones in Western Australia.
Oil and gas producer Woodside climbed 49? to $35.04 after the company maintained its full-year production target and increased first-quarter revenue. Santos rose 4? to $14.04 as higher oil and gas production and stronger prices lifted first-quarter revenue by 50 per cent.
Among the banks, the Commonwealth was flat at $50.78 after it announced its plans to grow market share.
Westpac dipped 4? to $22.02, ANZ rose 4? at $23.30, and National Australia Bank added 6? to 25.24.
Ports and rail operator Asciano rose 4? to $4.79 as it reached agreement with the Maritime Union of Australia on a new enterprise agreement for container terminal workers.
Telstra was up 3? at $3.39 after it said it expected to generate up to $3 billion in extra cash over the next three years as a result of its agreement with the federal government for the rollout of the national broadband network.
Australian Pharmaceutical Industries rose 3? to 37? as it said it planned to continue expanding its chain of Priceline pharmacies despite the gloomy outlook for the retail sector.
ALL ORDS AUSTRALIA
APR 19
HIGH 4453.7
LOW 4425.6
4441.3 14.1 (0.3%)
Frequently Asked Questions about this Article…
Why did the Australian sharemarket hit a nine-month high?
The market reached its highest level since October after China's central bank said it planned to increase the supply of cash to the economy, which lifted investor appetite for Australian resource stocks and pushed the ASX 200 and All Ordinaries higher.
How did the ASX 200 and All Ordinaries close on the day the market hit a nine-month high?
The ASX 200 closed up 14 points, or 0.3 percent, at 4,362.7, while the All Ordinaries finished at 4,441.3, up 14.1 points (0.3 percent).
Which miners and energy companies led the gains and what company updates supported the rally?
Large miners and energy companies drove the rally after positive quarterly production reports and updates — BHP Billiton, Rio Tinto and Woodside Petroleum released encouraging results and Fortescue Metals provided an update that helped lift the sector.
What notable stock moves among resources and producers were reported?
Several resource and energy stocks rose to higher prices: BHP was trading around $35.50, Rio Tinto around $66.60, Fortescue about $6.02, Woodside at $35.04 and Santos at $14.04, reflecting the sector-wide strength.
Did any companies report production or revenue changes that investors should note?
Yes. Fortescue said third-quarter iron ore production fell below guidance after cyclones in Western Australia; Woodside maintained its full‑year production target and increased first‑quarter revenue; and Santos reported higher oil and gas production with first‑quarter revenue up 50 percent.
How did the big Australian banks perform amid the market move?
Bank results were mixed: the Commonwealth Bank was flat at about $50.78 after announcing plans to grow market share, Westpac dipped to roughly $22.02, ANZ rose to about $23.30, and National Australia Bank moved to around $25.24.
What company-specific corporate news moved shares outside the resources sector?
Asciano rose after reaching an enterprise agreement with the Maritime Union of Australia for container terminal workers; Telstra gained after saying it expected up to $3 billion in extra cash over three years from its NBN agreement with the government; and Australian Pharmaceutical Industries said it will continue expanding its Priceline pharmacies despite a gloomy retail outlook.
What should everyday investors watch following the sector-driven market rise?
Investors should keep an eye on China policy moves (such as central bank liquidity changes), quarterly production and revenue updates from major miners and energy companies, and company-specific news (like production guidance, labour agreements and government contracts) that can drive sector rotations and share prices.
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