SYDNEY: The Australian sharemarket closed more than 1 per cent higher on a resurgent financial sector, after beaten-down blue-chip stocks fell to a heavily discounted level.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was up 59.6 points, or 1.08 per cent, at 5,595.4, while the broader All Ordinaries index rose 55.1 points, or 1 per cent, to 5,590.3.
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After underperforming for the last few months, the local market was looking cheap in global terms, on a price-earnings basis, IG strategist Evan Lucas said.
The Australian sharemarket is trading at a 9 per cent discount to the MSCI World index — the second largest discount of the decade, Mr Lucas said.
“Over 70 per cent of Australian large cap stocks offer discounted value to global peers,” he said.
The financial sector rallied the market today, surging 1.61 per cent, with big gains in blue-chip stocks.
ANZ lifted 2.1 per cent to $32.845, while Commonwealth Bank was up 1.93 per cent to $83.97.
National Australia Bank gained 1.68 per cent to $33.34, while Westpac climbed 2.54 per cent to $33.12.
