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The Australian stock market made its best one-day percentage gain in almost 10 years today as global markets were boosted by US Federal Reserve's intervention last Friday in the United States to stabilise credit markets.
CMC Markets senior dealer Josh Whiting said the local market had had a "crazy" day.
"It was up very strongly, with some investors in the market cheering the Fed's intervention by changing the discount rate," he said.
"The big blue-chip stocks led the index higher as you would expect. BHP Billiton was up significantly."
At the 1615 AEST close, the benchmark S&P/ASX200 index had soared 261.6 points, or 4.61 per cent, to 5932.6.
The All Ordinaries index lifted 256.2 points, or 4.52 per cent, to 5926.5.
The gains were the biggest since October 29, 1997 when both indices lifted 5.9 per cent.
On the Sydney Futures Exchange at 1626 AEST, the September share price index contract added 322 points to 5910 on a volume of 47,668 contracts, according to preliminary calculations.
In the resources sector, global miner BHP Billiton gained $2.46, or 7.58 per cent, to $34.90. Rio Tinto rose $3.89 to $85.05.
Oil and gas producer Woodside Petroleum was $2.35 richer at $41.10, and Santos was 45 cents heavier at $11.80.
Among companies reporting their financial results today, QBE Insurance Group jumped by $3.02, or 10.98 per cent, to $30.52 after it posted a 56 per cent lift in first half earnings and said it had plenty of funds to cover any insurance claims in the US arising from damage caused by Hurricane Dean.
Steel maker BlueScope Steel was 52 cents heavier at $10.75 as it has doubled annual earnings and said global demand for steel remained strong.
On Wall Street on Friday, the Dow Jones industrial average surged 233.3 points to 13,079.08 after the US Federal Reserve slashed the discount cash rate charged to banks by 0.5 percentage points, thereby stabilising credit markets that had been rocked by the sub-prime mortgage lending crisis.
In the banking sector, National Australia Bank was up $1.81 at $39.79, Westpac improved $1.15 to $26.35, Commonwealth Bank put on 86 cents to $53.36, and ANZ gained $1.04 to $28.58.
Investment bank Macquarie Bank surged $6.01 to $70.75. The bank's shareholders will meet in October to vote on plans by the bank to create a non-operating holding company structure.
Among other financial stocks, hedge fund manager HFA Holdings rose eight cents to $1.88 as it raised its profit guidance again for 2006/07.
Among the telcos, Telstra fell five cents to $4.19 as it went ex dividend.
Optus-owner Singapore Telecommunications put on 19 cents to $2.85.
STW Communications Group found nine cents at $2.44 as it posted a 25 per cent lift in annual net profit to $19.52 million.
In the media sector, News Corp was 81 cents better off, while its non-voting scrip firmed 67 cents to $25.67.
Publishing and Broadcasting added 59 cents to $16.99, and Fairfax lifted 17 cents to $4.71.
The Ten Network picked up 10 cents to $2.61 as Federal Treasurer Peter Costello said he had no objection to CanWest Global Communications Corp converting its 56.7 per cent economic stake in Ten into voting stock.
Among the retailers, Coles Group advanced 63 cents to $14.03, and Woolworths ascended 86 cents to $27.28.
Toy retailer Funtastic slipped 3.5 cents to $1.48 as it reported a 2.6 per cent decline in first half net profit.
In the gold sector, Newcrest rose 75 cents to $25.01, Newmont was up 12 cents at $5.05, amd Lihir added 16 cents to $2.90.
At 1657 AEST the price of gold in Sydney was US$656.20 per fine ounce, up US$9.20 on Friday's close.
Among other stocks, steelmaker OneSteel was 43 cents heavier at $6.04 as it celebrated the completion of its Smorgon Steel Group merger by taking over Australia's fourth-largest stainless steel distributor Fagersta Group.
Industrial services company Brambles was up 28 cents at $13.18 as it informed the market that infrastructure company Asciano Group's stake in the company has increased to 2.84 per cent.
The top traded stock by volume was petroleum and gas explorer Empire Oil & Gas, with 424.8 million shares worth $17.15 million changing hands. Empire Oil & Gas shares were up 1.1 cents at 4.3 cents.
Preliminary national turnover was 2.18 billion shares worth $7.39 billion, with 1,160 stocks up, 235 down and 239 unchanged.
- AAP
