PERTH: The Australian market has bounced at the open, extending yesterday’s gains as blue chip stocks continue to find their feet after a sell-off last week.
At the 10.15am official market open, the benchmark ASX 200 index was up 60 points, or 1.15 per cent, at 5299.2 points, the broader All Ordinaries index rose 56.7 points, or 1.07 per cent, at 5347.9.
CMC Markets chief analyst Ric Spooner said another day of recovery in US markets and strong gains in the oil price were positive for the local market.
“Energy stocks are likely to build on yesterday’s good gains,” Mr Spooner said. “Buyers are positioning for cyclical recovery in this sector with merger and acquisition potential providing additional support.”
Overnight, a strike by Brazilian oil workers trimmed the daily output of giant energy group Petrobras by around 25 per cent, while the closure of an oil export terminal in Libya was also a bullish factor.
The upshot was a 3.8 per cent surge in US Nymex crude while global benchmark Brent crude bounced 3.6 per cent.
