PERTH: The Australian sharemarket soared on Tuesday, adding more than $30 billion in a broad-based rally as investors cheered a bailout deal struck between Greece and its creditors.
The benchmark S&P/ASX 200 closed up 1.95 per cent or 104 points to 5577.4, its second largest rise this year, while the All Ordinaries finished up 1.9 per cent to 5561.9.
The local rally followed strong rises on global markets, after news broke just after the Australian share market closed on Monday that marathon discussions between Greece and its creditors had ended with a bailout agreement.
“It’s just a relief rally, because the markets got too concerned with what was going on with Greece,” Auscap Asset Management portfolio manager Tim Carleton said.
“Greece may have played a role in increasing volatility domestically, but ultimately its not going to have any impact on earings of the companies involved,” he said.
But Morgans private client adviser Alistair McCorquodale said today’s rally was all about “certainty”.
“The market’s been trading for a number of weeks now with ongoing uncertainty with what the outcome in Greece will be,” he said.
“The agreement last night between Greece and its creditors provides certainty, that in my view is what the market is trading on. There’s not going to be any ongoing further volatility as far as negotiations as concerned.”
The broad-based rally was led by the miners. BHP Billiton added 2.6 per cent to $27.1, while Rio Tinto gained 3 per cent to $53. Beleaguered iron ore miner Fortescue Metals Group also rallied, up 3.8 per cent to $1.79.
http://www.smh.com.au/business/markets/asx-in-stunning-30b-relief-rally-on-greek-deal-20150714-gibkp7.html
