TH: Rising commodities pricing pushes Australian stocks 1pc higher at close
THE Australian sharemarket closed 1 per cent stronger today as materials and energy sectors were helped by rising commodity prices.
The benchmark S&P/ASX 200 index was up 48 points, or 0.98 per cent, at 4924.3 points, while the All Ordinaries index put on 49.7 points (1.02 per cent) to 4939.5 points.
On the Sydney Futures Exchange, the March share price index contract was 51 points higher at 4928, on 27,776 contracts.
BHP Billiton was up 20 cents at $43.28, while Rio Tinto gained $1.43 (1.91 per cent) to $76.35.
Oil prices rose more than $US2 in New York overnight to $US81.51, while gold climbed a tick above $US22. Copper and silver contracts on the New York Mercantile Exchange also advanced.
Santos was up 21c (1.47 per cent) at $14.50, Oil Search was up 2c at $6.15 and Woodside Petroleum rose 44c to $47.97.
IG Markets analyst Ben Potter said the ASX 200 index finished the session at its highest level since September 2008 after it broke through resistance at 4895.3 in the morning.
“A return of the risk trade and rising commodity prices boosted confidence and in turn drove the ASX 200 higher, especially the materials and energy sectors,” Mr Potter said.
“Although volumes were light, this is still a very positive sign as recent momentum has been underpinned by a concerted pickup in manufacturing data across the globe.
“The positive economic data of the last few days combined with rising commodity prices shows that the global economy is on track for a self-sustaining recovery.”
