KEY POINTS:
The Australian stock market surged to record highs today after strong United States markets and higher prices for some base metals boosted investor sentiment.
CMC Markets market analyst David Land said the local bourse made good gains pretty much across the board, but the major banks and miners had done especially well.
"That's really underpinned this big gain that we've seen," Mr Land said.
He said the market had been anticipating a good day in the materials sector after some good movements in prices for some metals, including copper and zinc, in London overnight.
The banks seemed to be riding on upward momentum after recent good profit results from ANZ Banking Group and St George Bank.
"We also had a good bounce on the Dow (Dow Jones index in the US)," Mr Land said.
He said that today's decision by the Reserve Bank of Australia (RBA) to keep interest rates unchanged had not had a material effect on the market because the decision had largely been anticipated.
At the 1615 AEST close, the benchmark S&P/ASX200 index was up 91.9 points, or 1.5 per cent, at a new record close of 6,237.7, surpassing the prior record of 6236.9 points set on April 18.
The all ordinaries lifted 84.3 points, or 1.37 per cent, to 6,224.5, beating the previous record close of 6,215.0 also set on April 18.
On the Sydney Futures Exchange, the June share price index contract was up 77 points at 6251 on a volume of 22,826 contracts, according to preliminary calculations.
The RBA today left the overnight cash rate target at 6.25 per cent, as high as it has been for a decade.
The announcement, which came as no surprise, will increase the focus on the RBA's quarterly statement on monetary policy, due on Friday.
On Wall Street overnight, the Dow Jones industrial average rose 73.23 points to 13,136.14.
Among the major banks, the National Australia Bank was 86 cents higher at A$43.81, Westpac was 34 cents richer at A$27.54, the Commonwealth Bank rose 88 cents to A$53.64, and the ANZ strengthened 39 cents to A$30.79.
The St George Bank fell 40 cents to A$36.25.
In the resources sector, global miner BHP Billiton gained 61 cents to A$29.76, and Rio Tinto ascended A$1.60 to A$82.75.
Alumina advanced 11 cents to A$7.31 after it said demand for alumina and aluminium remained robust and prices were expected to remain firm.
Oxiana found nine cents at A$3.09 after it gave an upbeat outlook for commodity prices this year and said it expects to make more acquisitions.
Oil and gas producer Woodside Petroleum was up 88 cents to A$40.38, and Santos rose 47 cents to A$12.09.
In the media sector, News Corp fell 56 cents to A$28.57 while its non-voting stock reversed 84 cents to A$26.36 after mogul Rupert Murdoch launched a takeover bid for the US publishing firm Dow Jones, which owns the Wall Street Journal newspaper.
Publishing and Broadcasting fell two cents to A$20.30, and Fairfax added 11 cents to A$5.23.
Telco Telstra picked up nine cents to A$4.85 as it said its tentative agreement with the federal government to build a A$4 billion fibre optic high speed broadband network has been undermined by the competition regulator.
Optus-owner Singapore Telecommunications nudged up one cent to A$2.70.
Retailer Coles Group advanced 45 cents to A$17.72, and Woolworths gained 19 cents to A$28.45.
In the gold sector, Newcrest was up 15 cents at A$22.60, and Lihir scraped off one cent at A$2.92.
The price of gold in Sydney at 1700 AEST was US$673.10 per fine ounce, down US$5.95 on yesterday's close.
Among other stocks, takeover target Symbion Health was steady at A$4.29 as investors considered the possibility of another predator emerging for the pathology, medical centres and drugs company.
Symbion has said it was in talks with a consortium led by rival Healthscope about a possible A$2.78 billion takeover.
The top-traded stock by volume was national carrier Qantas Airways, with 64.8 million shares worth A$345.1 million changing hands.
Qantas was four cents higher A$5.34.
Preliminary national turnover was 1.63 billion shares worth A$6.54 billion, with 718 stocks up, 488 down and 401 unchanged.
- AAP