Australian sharemarket keeps climbing higher, All Ords hits another fresh all-time high

The ASX has racked up five straight days of gains, the All Ordinaries Index has hit an all-time high and the S&P/ASX200 is closing in on its record.

The Australian sharemarket keeps clawing higher, with the All Ordinaries Index comprising the nation’s top 500 companies setting yet another fresh record while the benchmark S&P/ASX200 closed in on its all-time peak.

The S&P/ASX200 firmed 2.1 points at 7065.6 while the All Ordinaries Index added 2.2 points to 7328.

CommSec analyst Tom Piotrowski said it was the fifth straight day of gains for the ASX, “which is in itself a valuable indicator of the momentum that we’re seeing”.

“It seems as though we’re in a bit of a purple patch when it comes to upbeat either economic or corporate news. That was the factor propelling US markets to record highs last week,” Mr Piotrowski said.

He said the S&P/ASX200 index was “within touching distance” of its all-time record.

The highest ever close for the S&P/ASX200 index was 7162 on February 20 last year.

OpenMarkets Group chief executive Ivan Tchourilov said positive leads from overseas markets on Friday had flowed through to the local bourse, with banking and resource stocks leading the way.

Mr Tchourilov said Commonwealth Bank had its highest close since before COVID-19 struck in earnest, climbing 0.97 per cent to $88.84.

Commonwealth Bank shares are back at heights seen in February 2020. Picture: NCA NewsWire/Sarah Matray

ANZ appreciated 0.38 per cent to $28.93, National Australia Bank softened 0.15 per cent to $26.68 and Westpac improved 0.16 per cent to $25.36.

Lithium miner Orocobre announced a “merger of equals” with rival Galaxy Resources to form the world’s fifth biggest producer of the battery mineral in a $4bn deal.

“It’s a significant play that will boost global production and increase their market share as a single producer,” Mr Tchourilov said.

In a joint statement, the companies said there was a compelling logic to the tie-up, which would bring together a highly complementary portfolio of assets delivering geographical and product diversification.

Both also released their March quarterly reports, reporting positive production figures.

Galaxy shares surged 6.09 per cent to $3.83 while Orocobre advanced 5.65 per cent to $6.55.

Rio Tinto put on 1.66 per cent to $120.85, BHP inched one cent lower to $47.56 and Fortescue lifted 1.83 per cent to $21.20.

Mr Piotrowski said it was unsurprising the materials sector was faring well, with the price of many commodities at multi-year highs.

Mining stocks are benefiting from high commodity prices.

“In the case of iron ore, nine-and-a-half-year highs and that’s to a degree being reflected in prices today … BHP dragging the chain a little bit,” he said.

“Oil prices have had a bit of a march higher in recent times but that has not fully translated to the performance of energy stocks, so today they are laggards.”

Beach Energy declined 1.94 per cent to $1.77, Oil Search slipped 1.5 per cent to $3.95, Origin Energy weakened 2.1 per cent to $4.19, Woodside gave up 1.87 per cent to $23.62 and Santos dropped 1.26 per cent to $7.06.

Shares in vehicle dealer Eagers Automotive hit a new all-time high of $16.25, up 4.57 per cent, after several broker price target increases.

Mr Piotrowski said that reflected a strong car market.

“If you have a look at second-hand car prices at the moment, robust is probably an understatement,” he said.

Crown Resorts said it received an unsolicited proposal from Oaktree Capital Management to provide about $3bn in funding to buy back some or all of James Packer’s 37 per cent stake in the casino giant.

“That’s an interesting development in the context of an existing takeover bid that’s in place from Blackstone at $11.85,” Mr Piotrowski said.

James Packer (left) with Lawrence Ho (right), son of the late Macau gaming tycoon Stanley Ho, who allegedly had underworld connections, and his wife Sharen (centre) at the grand opening of the City of Dreams mega-casino in Manila in February 2015. Picture: AFP/Jay Directo

Last year’s NSW gaming regulator inquiry found the high-roller focused reclusive billionaire had had a “disastrous” influence on the company.

Crown shares inched 0.67 per cent higher to $12.

Property group GPT provided its full year guidance, forecasting 8 per cent growth in funds from operations and 12 per cent growth in distribution per security.

Chief executive Bob Johnston said the disruption to its operations was abating but risks remained, including the speed of recovery of its Melbourne Central Shopping Centre and further COVID-19 related disruptions.

“Consumer confidence continues to be strong driving foot traffic at our shopping centres, office utilisation is steadily increasing and demand for logistics assets remains strong reflecting the increased economic activity,” he said.

Shares in GPT dropped 3.12 per cent to $4.66.

Metals recycler Sims Ltd jumped almost 9 per cent to $16.56 after providing a buoyant trading update.

“Sims is well positioned to benefit from global infrastructure spending, the need for countries and companies to reduce their carbon footprint from steel production to meet CO2 commitments, and the potential for China to import meaningful volumes of recycled ferrous products,” chief executive Alistair Field said.

The Aussie dollar was buying 77.39 US cents, 55.86 British pence and 64.61 Euro cents in afternoon trade.