THE sharemarket closed higher yesterday as investors kept up the momentum from last week's rally, underpinned by positive US futures prices.
The market took heart from the German and French governments saying they would back a plan to recapitalise ailing European banks in an effort to contain the euro-zone debt crisis.
By the close, the S&P/ASX 200 Index had risen by
38.1 points, or 0.92 per cent, to 4201.
CommSec analyst Juliette Saly said trading volumes had been very low lately, but yesterday's effort had been solid and better than expected after the market's best weekly performance in more than a year last week.
"We've seen this rally have a bit of momentum at the moment," Ms Saly said. "Obviously comments from Germany and France helped, and also the US futures were up by about 1 per cent all day."
She said investors expected positive results and strong guidance from the US earnings season.
Energy stocks were yesterday's strongest gainers, rising 1.9 per cent. Woodside Petroleum rose 47?, or
1.3 per cent, to $35.55, Santos advanced 31?, or 2.6 per cent, to $12.33 and Oil Search gained 2? to $5.95.
Shares in uranium explorer Extract Resources shot up 82?, or 10.2 per cent, to $8.86, amid speculation that China's Guandong Nuclear Power would make a $2.2 billion offer for the company.
The biggest gainer on the S&P/ASX 100 was uranium explorer and miner Paladin Energy, which jumped 16?, or 10.3 per cent, to $1.71.
Financials ended the day 1.2 per cent higher, with all the big retail banks firmer. Westpac gained the most ground in percentage terms, up 2.2 per cent, or 46?, at $21.70.
"Investors are getting back into banks we know they're solid and pay good dividends and they've been heavily oversold of late. So once you see positive momentum, you see a bit of traction," Ms Saly said.
The telecoms sector closed 1.5 per cent stronger, pulled higher by Telstra, which rose 5?, or 1.7 per cent, to $3.08.
A stronger Australian dollar affected companies with offshore operations and earnings, including medical equipment company ResMed, which was the worst performer in the top 100. It dropped 5?, or 1.6 per cent, to $3.02.
Fairfax Media was steady at 89.5? after saying it had agreed to sell its regional radio assets to Grant Broadcasters.
Qantas rose 2.5?, or
1.7 per cent, to $1.52.
The spot gold price finished the Australian session down $US7 at $US1651 an ounce. AAP
Frequently Asked Questions about this Article…
Why did the S&P/ASX 200 climb today and how much did it gain?
The S&P/ASX 200 rose 38.1 points, or 0.92%, to 4,201. Markets kept momentum from last week's rally, helped by positive US futures and comments that Germany and France would back a plan to recapitalise troubled European banks. CommSec noted trading volumes have been low but the day's performance was solid amid expectations for a strong US earnings season.
Which sectors led gains on the ASX and which energy stocks performed well?
Energy was the strongest sector, up about 1.9%. Notable performers included Woodside Petroleum (up 1.3% to $35.55), Santos (up 2.6% to $12.33) and Oil Search (up around 2% to $5.95). Financials and telecoms also rose, helping overall market breadth.
Why did uranium stocks surge on the ASX today?
Uranium explorers jumped after takeover speculation and strong sector interest. Extract Resources rose 10.2% to $8.86 amid reports Guangdong Nuclear Power might make a $2.2 billion offer, and Paladin Energy was the biggest gainer on the S&P/ASX 100, up about 10.3% to $1.71.
What drove gains in bank shares and how did major banks perform?
Financial stocks were up about 1.2% as investors rotated back into banks perceived as solid and reliable dividend payers after they had been heavily oversold. Westpac led the big banks in percentage terms, gaining about 2.2% to $21.70.
How did the stronger Australian dollar affect listed companies?
A stronger Australian dollar hit companies with significant offshore operations and earnings. Medical equipment maker ResMed was the worst performer in the top 100, falling about 1.6% to $3.02, reflecting currency pressure on exporters or offshore earners.
What corporate news affected Fairfax Media and Qantas shares today?
Fairfax Media was steady at around 89.5 cents after saying it had agreed to sell its regional radio assets to Grant Broadcasters. Qantas also rose, up about 1.7% to $1.52.
How did the telecoms sector perform and what was Telstra's movement?
The telecoms sector closed roughly 1.5% stronger, with Telstra leading the group and rising about 1.7% to $3.08, which helped lift the sector overall.
What happened to the gold price during the Australian session?
Spot gold finished the Australian session down US$7, at about US$1,651 an ounce.
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