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MELBOURNE - The Australian sharemarket closed almost four per cent higher for the second consecutive session today as world markets rebounded on signs the global credit crunch may be easing and the United States may do more to stimulate its sputtering economy.
Local mining stocks also made big gains.
At the 1615 AEDT close, the benchmark S&P/ASX200 was up 160.2 points, or 3.87 per cent, at 4,302.5, while the broader All Ordinaries added 152.7 points, or 3.73 per cent, to 4,251.4.
On the Sydney Futures Exchange, the December share price index futures contract was 166 points higher at 4,324, on a volume of 29,949 contracts, according to preliminary calculations.
In the banking sector, National Australia Bank gained $1.68, or 7.3 per cent, to $24.66 as chief executive John Stewart said the bank, and Australia as a whole, were well placed to weather the global financial crisis.
NAB surged despite posting a 0.9 per cent fall in reported annual net profit to $4.5 billion, and a 10.7 per cent plunge in cash earnings to $3.9 billion.
Ord Minnett private client adviser Francesco De Stradis said the market's performance today was quite promising but volatility remained.
"The outlook so far tonight on the (US) futures is negative, but the broader economic moves that are being touted by the US government with fiscal stimulus makes it look a bit promising," he said.
Commonwealth Bank shed one cent to $43.19, ANZ gained $1.12 to $18.85, and Westpac put on 17 cents to $23.12.
Elsewhere in the financial services sector, Allco Finance Group offloaded 2.5 cents to 13 cents as it said it may not be able to meet a debt repayment schedule agreed with its bankers unless the syndicate allows an extension.
In the resources sector, global miner BHP Billiton was $2.82, or 10.65 per cent, higher at $29.31, and Rio Tinto soared $8.07, or 12.17 per cent, to $74.36.
Zinc producer OZ Minerals was 9.5 cents richer at $1.16 after it said it was reviewing the profitability of its Century zinc mine in Queensland as the operation comes under pressure from falling commodity prices.
Oil Search improved 32 cents to $4.03 was as it said revenue for the third quarter fell due to lower oil sales.
Woodside Petroleum ascended $4.21, or 10.99 per cent, to $42.52, and Santos added 65 cents to $12.05.
On Wall Street overnight, the Dow Jones Industrial Average added 413.21 points, or 4.67 per cent, to 9,265.43.
In the gold sector, Newmont was 48 cents heavier at $4.40, Newcrest picked up 27 cents at $22.37 and Lihir was up 10.5 cents at $2.00.
The price of gold in Sydney at 1630 AEDT was US$794.05 per fine ounce, down US$11.75 on yesterday's close of US$805.80.
In the retail sector, Woolworths rose seven cents to $28.07 after it lifted first quarter sales and maintained its sales growth guidance for the full year.
Harvey Norman found five cents at $2.77 despite saying retail margins continued to be under pressure.
Wesfarmers, which owns Coles, rose $1.83 to $22.30.
Among the telcos, Optus-owner Singapore lifted five cents to $2.60 as Optus said it would not invest in fixed-line phone and internet networks in Australia if Telstra is awarded control of the national broadband network.
Telstra was up two cents at $4.20.
In the media sector, News Corp was 43 cents better off at $14.70, and its non-voting stock added two cents to $14.04.
Consolidated Media was off 4.5 cents at $1.975 and Fairfax nudged up one cent to $2.13.
Among other stocks, shoes, clothing and bed-linen manufacturer Pacific Brands fell 9.5 cents to $1.685 as it said its 2008/09 result was likely to be flat at best as consumer sentiment remains weak.
Hearing implant company Cochlear lost $4.15, or 6.92 per cent, to $55.85 despite saying it was on track to achieve double-digit earnings growth in fiscal 2009 and was well positioned to ride out the global financial crisis.
The top-traded stock by volume was Valad Property Group, with 44.83 million shares worth $3.44 million changing hands. Valad was up 0.7 cents at 7.6 cents.
Preliminary national turnover was 1.24 billion shares worth $4.52 billion, with 612 stocks up, 392 down and 310 unchanged.
- AAP
