SYDNEY: The Australian sharemarket rose strongly today, with a rally in banking stocks leading the market higher amid a global equities bounce.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index had lifted 105.9 points, or 2.07 per cent, to 5221.1, while the broader All Ordinaries had improved 103.4 points, or 2.01 per cent, to 5236.9.
The gains followed 2 per cent rises on Wall Street overnight and improvements of more than 1 per cent in major European markets.
Meanwhile, China’s key Shanghai Composite Index was tracking about 1.5 per cent to the positive today just prior to the Australian close.
The moves followed a strong close in China yesterday amid transparent – and speculation of hidden – moves by Beijing to bolster its bourse.
And Japan’s market enjoyed its biggest rise since 2008, the benchmark lifting more than 7 per cent.
IG market analyst Angus Nicholson said the local market had responded well to improving global sentiment, with the banks the standouts.
“All of the big four banks have seen their stock price drop by 10 per cent or more since August. This saw their price-to-earnings ratio drop below their long-term averages. Despite concerns over refinancing needs and new capital requirements, the compelling yield available in banking stocks clearly has meant that investors are happy with the current pricing,” he said.
