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SYDNEY - The Australian stock market has started the week off with a bang, closing at a record high today,as investors bought into the market feeling more secure after last week's US interest rate cut.
The benchmark S&P/ASX200 index finished at a record, up 93.6 points to 6451.5, beating its best day's close of 6422.3 points on July 24.
It also set a fresh intra day high of 6457.8, crushing the prior intra day high of 6436.7 reached on July 13.
The All Ordinaries busted its closing record, ending 89.9 points up at 6461.1, surpassing its previous record close of 6456.7 on July 20.
At 1615 AEST on the Sydney Futures Exchange, the December share price index contract was 106 points firmer at 6528, on a volume of 19,077 contracts.
Macquarie Equities client adviser David Halliday today's superb run higher took many by surprise.
"Many have been waiting for a pullback, for the market to start buying some shares, and it just hasn't come so people have been forced to wade in and buy over the last couple of days, which is why we are seeing the market nudge through to an absolute record high intra day and certainly a closing high," he said.
"It is all pretty exciting."
Mr Halliday said last week's 50- basis point interest rate cut by the US Federal Reserve Bank was a "pretty simulative" move.
"Moreover it shows that central banks, not just in the US, but around the world are going to do what it takes to keep asset values up and equity markets kicking along," he said.
"That is the priory and inflation seems to be a secondary issue. "
The big miners buoyed the market, both also reaching record trades, with BHP Billiton lifting A$2.14 to A$43.41 and Rio Tinto was A$3.47 higher at A$106.68.
Mr Halliday said Rio Tinto and BHP Billiton made big moves and there were rumours floating about BHP making resource upgrades.
"Nothing is confirmed, but that certainly helps on a good day," he said.
Mr Halliday said there was still room for further upside, with the banks all doing well.
The big banks, the Commonwealth Bank of Australia was up 58 cents at A$56.22, National Australia Bank was 80 cents firmer to A$38.29, ANZ had gained 31 cents to A$28.71 and Westpac was 16 cents up at A$27.45.
"Most of the banks are still a long way away from their record highs, so if the financial sector starts to settle down,... then there is no reason why we couldn't kick higher from here," Mr Halliday said.
Crude oil for November delivery consolidated near recent highs and closed at US$81.26 a barrel in New York trade on Friday night, but the local energy sector powered ahead.
Woodside was up nearly two per cent, adding 97 cents at A$50.19 and Santos adding 14 cents to A$14.51 after it said oil production from the Oyong project in Indonesia had begun,. An investment decision for gas production was expected before the end of the year.
But Oil Search dropped six cents to A$4.31.
The spot price of gold was lower and at 1645 AEST was trading at US$734.40 an ounce, down US$2.20 an ounce from Friday's local close.
The gold miners were mixed, with Newmont adding four cents to $5.54, Lihir picking up seven cents to $3.91 and Newcrest losing 17 cents to $28.39.
In the news today, Publishing and Broadcasting Ltd (PBL) and West Australian Newspapers Holdings Ltd (WAN) have sold out of the cinema chain Hoyts Group, each booking a A$23.5 million loss on the purchase price.
Private equity firm Pacific Equity Partners (PEP) will take control of the 55-cinema chain, film advertising and distribution company, in a deal valuing Hoyts at A$440 million.
PBL shares fell nine cents at A$18.59 and WAN shares were up 21 cents at A$15.00.
Explosives, chemicals and paint manufacturer Orica Ltd has acquired United States specialty bolt maker Excel Mining Systems LLC for USA$670 million (AA$775 million).
Its shares surged more than five per cent, up A$1.40 at A$29.30.
Challenger Wine Trust Ltd did not fare as well, with its shares dipping or two cents to 79.5 cents after it announced the purchase of Stephendale Vineyard in Griffith, New South Wales, for about A$25 million.
Shares in Sims Group Ltd have been placed in a trading halt. having last traded at A$32.55, ahead of what is tipped to be the purchase of another metals recycling business offshore.
The trading halt on the world's biggest metal recycler is expected to be lifted by Wednesday.
Empire Oil & Gas was the most traded stock on the market today with 149.6 million shares changing hands, worth A$4.2 million. The oil and gas explorer lost 0.4 cents to 2.6 cents.
Preliminary market turnover reached 1.8 billion shares worth A$6.09 billion, with 714 stocks up, 527 stocks down and 339 unchanged.
AAP