The Australian sharemarket closed higher on Monday, as strong gains from the resource sector helped climb.

The S&P/ASX 200 Index rose 19.9 points, or 0.3 per cent, to 7513.7.

Pendal soared 18.1 per cent to $5.29 after Perpetual lobbed a $2.4 billion bid at the rival asset manager. Perpetual fell 6.6 per cent to $31.97.

Liontown Resources climbed 9 per cent to $2.12 while Allkem added 7.3 per cent to $13.31.

Imugene slid 4 per cent to 24¢, Fletcher Building dipped 3.3 per cent to $5.66 and Bank of Queensland declined 3.2 per cent to $8.23.