Australia Markets closed

Resource, energy stocks boost market

The Australia share market has gained ground, thanks to investor demand for growth stocks, including Rio Tinto, BHP Billiton and Woodside Petroelum, after Wall Street hit record highs.

At 1033 AEDT on Monday, the benchmark S&P/ASX200 index was up 25.6 points, or 0.45 per cent, at 5,746.2, while the broader All Ordinaries index had risen 26.6 points, or 0.46 per cent, to 5,798.2.

IG chief market strategist Chris Weston said investors were chasing growth stocks, which is boosting the resource and energy indexes, following US President Donald Trump's recent comments about releasing "phenemonal" tax reform plans over the next two to three weeks.

"There seems to be some goodwill towards growth stocks again," amid expectations of tax reforms and reduced regulation, he said.

Resource heavyweight Rio Tinto jumped $1.81, or 2.7 per cent, to $67.76 while rival BHP Billiton rose 41 cents, or 1.6 per cent, to $26.29, thanks to a sharp jump in iron ore prices to $US86.85. Copper prices rose to their highest level in 20 months.

Energy giant Woodside rallied 45.5 cents, or 1.4 per cent, to $31.97, helped by rising oil prices on Friday amid reports that OPEC members had delivered more than 90 per cent of the output cuts they'd pledged.

Bendigo and Adelaide Bank dropped 50 cents to $12.13 after the bank delivered flat first-half cash earnings of $224.7 million.

Ansell shares fell 67 cents to $21.45 after the gloves and protective clothing maker warned of higher raw material costs.

Wall Street's main stock indices hit record highs on Friday, supported by energy shares and renewed optimism about President Trump's economic plans.

The Dow Jones Industrial Average jumped 0.48 per cent, the S&P500 was up 0.36 per cent, and the Nasdaq climbed 0.33 per cent - all record highs.

Meanwhile, the Australian dollar rose against the US dollar, supported by the rising iron ore price.

The local currency was trading at 76.71 US cents at 1033 AEDT on Monday, from 76.40 on Friday.


* At 1033 AEDT, the benchmark S&P/ASX200 was up 25.6 points, or 0.45 per cent, at 5,746.2 points.

* The broader All Ordinaries index was up 26.6 points, or 0.46 per cent, at 5,798.2 points.

* The March SPI200 futures contract was up 28 points, or 0.49 per cent, at 5,695 points.


* The Australian dollar is trading higher at 76.71 US cents, up from 76.40 US cents at Friday's close.

(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)