Australian shares near highest level on record

Australian shares advanced on Wednesday, as a record breaking session on Wall Street helped propel the local market to just 1.2 per cent below record levels.

Following a record breaking session on Wall Street overnight, Australian shares extended their gains on Wednesday to near record highs.

At the close of trading, the benchmark S&P/ASX200 index added 0.7 per cent, or 48.8 points, to reach 7537.9.

The All Ordinaries finished slightly lower, firming 0.6 per cent to 7764.

The Australian dollar also reached its highest level in five months, climbing to US67.74c as interest rate differentials between the RBA and the Federal Reserve sent the local currency higher.

CommSec market analyst Laura Besarati said the share market was on track to book its best monthly performance of 2023 if gains hold.

“Today, we got within one per cent of record highs, but we did ease a little from those highs of the session,” Ms Besati said.

Wall Street booked a record breaking session overnight with the NASDAQ and Dow Jones indices reaching record highs. Picture: AFP / Michael M. Santiago

Buoyed by optimism over US interest rates cuts, Wall Street finished higher on Tuesday.

The Dow Jones index and the tech-heavy NASDAQ both added 0.7 per cent to reach a record high. The S&P 500 added 0.6 per cent.

Despite more hawkish rhetoric from some Federal Reserve policymakers, Ms Besati said markets were still pricing in more aggressive rate cuts than the central bank was forecasting.

“Markets are still celebrating ultimately, and that’s why we have seen a rally in the Aussie market as well, trickling in from what is happening in the US.”

Locally, 10 of 11 industry sectors finished in the green, led by a jump in telecoms stocks which added 1.1 per cent.

Telstra increased 1.8 per cent to $3.96, while TPG Telecom rose 1.4 per cent to $5.09.

Energy stocks added 0.4 per cent, closing at their highest levels since November 15.

Sector heavyweight Woodside rose 0.6 per cent to $31.20 and Beach Energy climbed 2.5 per cent to $1.65.

Attacks by Yemen’s Iran-aligned Houthi militants on ships in the Red Sea have disrupted maritime trade, pushing Brent crude to almost $US80 a barrel.

Iranian backed Houthi rebels have attacked oil tankers and cargo ships, disrupting global trade flows. Picture: Supplied

Gold miners also charged ahead, as the price for the precious metal reached $US2053 an ounce.

Northern Star Resources jumped 1.6 per cent to $13.62, while Evolution Mining rallied 2.1 per cent to $3.88.

In company news, shares in digital property settlements platform PEXA sank 11.8 per cent to $10.92 after it flagged uncertainties in Australia and UK markets.

The loss came despite its announcement that it had completed its acquisition of software company Smoove.

Explosives manufacturer Orica dropped 2.5 per cent to $16.21 after it agreed to acquire Canadian data delivery platform Terra Insights for $C505 million.

Orica will acquire the firm from Vance Street Capital on a cash free, debt free enterprise value basis.

Transurban has announced the appointment of NAB chief financial officer Gary Lennon to its board as a non-executive director, commencing March 18. Shares fell 0.2 per cent to $13.84.

The outdoor and sports retailer, KMD Brands, dived eight per cent to 70c — the lowest level since April 2020.

The firm, which owns Rip Curl, Kathmandu, and Oboz brands, said group sales for the first four months of the 2024 financial year were down 12.5 per cent, or $NZ16 million, from last year.

Originally published as Australian shares near highest level on record