CANBERRA: The Australian share market has closed two per cent higher as the banks and minerals sectors boosted the bourse. Investors were happy after minutes from the US Federal Reserve meeting hinted rates will be raised in the world’s biggest economy in December.
“The increase in the US interest rates was obviously bullish for financials, so that was the very strong gainer over in the US market and we’ve seen that carry over to our index today with a pretty strong performance by the banks,” IG market analyst Angus Nicholson told AAP.
National Australia Bank was the biggest gainer, adding 93 cents to its value, or 3.23 per cent to $29.72. ANZ followed, climbing 78 cents to $27.53, Westpac was up 76 cents $31.53 and Commonwealth Bank was up $1.30 to $79.14. Commodity prices rose overnight, which fed into the materials sector.
BHP Billiton closed 61 cents, or 3.08 per cent higher at $20.42 after its chairman Jac Nasser committed to finding out why its joint owned dam collapsed in Brazil, killing at least 11 people. Rio Tinto was up $1.88 or 4.02 per cent to $48.68. Woodside was the best performer in the energy sector, up 99 cents to $30.50.
The biggest gainer overall was OzForex, which soared 78 cents, or 30 per cent to $3.38 after it was revealed global currency transfer company Western Union wants to take it over.
Sonic Healthcare led the gains in the health sector after announced it was on track to lift earnings this financial year. It finished $1.47 higher, or 7.75 per cent to $20.43. In the red, James Hardie was down $1.34, or 7.54 per cent to $4.78 after it downgraded its full year profit guidance, citing below target growth in its share of an uncertain US housing market.
