PERTH: The Australian sharemarket has rallied to close 1.4 per cent higher despite a bumpy start that saw the bourse initially open in the red.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index had lifted 71.4 points, or 1.42 per cent, to 5113.5, while the broader All Ordinaries gained 68.4 points, or 1.35 per cent, to 5145.1.
Earlier, the benchmark index opened 9.8 points, or 0.19 per cent, lower at 5032.3 but turned around on a banks-led revival. It was a bumpy start to the week after last week’s 2.5 per cent fall.
Rivkin chief executive Scott Schuberg said the Australian equity market has been consolidating and experiencing contracting levels of volatility since the August declines shook markets.
“At this stage, we do not hold a strong view on whether the market will break higher or lower next,” Mr Schuberg said.
Meanwhile, the Australian dollar was holding ground at just above US70c despite US Federal Reserve chair Janet Yellen’s hints that she will likely hike interest rates this year.
“The Australian and Kiwi dollars have been showing surprising strength against the US dollar, despite both currencies having relatively weak outlooks,” IG analyst Angus Nicholson said.
“The Australian dollar seems to be awaiting further leads, but the odds are still skewed to it moving to the downside as strong US data or hawkish statements from Fed members are likely to help push it back below US70c,” Mr Nicholson said.
The financial sector was pulling the broader market higher, while there were big gains in IT stocks. Australian software company Atlassian filed for a listing in the US, which appeared to spark a fire under locally listed IT firms.
Commonwealth Bank had rallied 1.76 per cent to $72.70 while ANZ added 1.48 per cent to $27.40.
http://www.theaustralian.com.au/business/latest/aust-stocks-bounce-14-higher/story-e6frg90f-1227547615329
