Miners help propel local bourse to five-month high

The local bourse has booked its best seven-session run since Trump was elected, as Rio shares leapt to a three-year high.

A pedestrian is reflected in the window of the Australian Securities Exchange. (AFP PHOTO/PETER PARKS)

Local shares sealed their best seven-day consecutive gain since hopes of Trump-led fiscal stimulus buoyed global equities, buyers leapt into resources and propelled Rio Tinto to its highest level in three-and-a-half years.

At the close, the S&P/ASX200 index was 0.6 per cent, or 32.6 points higher on 5,846.8, while the broader All Ordinaries index also climbed 0.6 per cent, or 32.4 points to 5,917.2.

The share market sealed a five-month high and its best seven-day consecutive gain since early November, lifting 3.5 per cent, led by a 3.4 per cent tear by Rio Tinto shares to a three-and-a-half-year high of $70.55 after prices of iron ore jumped 4 per cent and crude oil rose on strong China demand.

“We’ve got generally quite a good risk on move in international markets, as evidenced not only by stronger stockmarkets here but stronger commodity markets in the Asian time zone,” said CMC chief markets analyst Ric Spooner,

BHP rose 2.2 per cent to $26.95, while iron ore pure-play Fortescue closed 1 per cent in the black at $4.94

“There’ll still be a bit of nervousness about iron ore,” said Mr. Spooner, “notwithstanding the fact that we’ve seen a little bit of recovery and as far as the banks are concerned, we’ll probably have to wait until we see the profit results from the larger banks.”

CBA rose 0.7 per cent to $77.20, Westpac added 0.5 per cent to $33.15, ANZ edged 0.3 per cent higher to $30.16 while NAB shares also rose 0.3 per cent to $32.25.

Gold miner Evolution gained four cents, or 1.8 per cent, to $2.30 after it lifted production and cut costs in the September quarter.

Energy stocks benefited from higher global oil prices which have risen in the wake of strong Chinese oil imports and geopolitical tension in Iraq. Woodside Petroleum was up 0.3 per cent to at $29.57, Santos improved 0.5 per cent to $4.19, and Oil Search ascended 0.8 per cent to $7.21. Among the major banks, Commonwealth Bank was 0.7 per cent richer at $77.20, National Australia Bank picked up 0.2 per cent at $32.25, Westpac firmed 0.4 per cent to $33.15, and ANZ rose 0.3 per cent to $30.16.

Meanwhile, the Australian dollar remained resilient against the US dollar which eased in the wake of Friday’s lower-than-expected US inflation report. At 1630 AEDT on Monday, the local currency was worth 78.74 US cents, from 78.34 US cents on Friday

With AAP