MELBOURNE - Bullish comments over Christmas sales by retailer Gerry Harvey and a big push into Rio Tinto shares have nudged the Australian sharemarket up.
At the close, the benchmark S&P/ASX200 index was up 31.2 points, or 0.67 per cent, at 4717, while the broader All Ordinaries was up 32.5 points, or 0.69 per cent, at 4739.2.
On the Sydney Futures Exchange, the December share price index contract was 28 points higher at 4729 points, on volume of 17,360 contracts.
Ord Minnett private client adviser Jon Hancock said Harvey's expectation of bumper Christmas sales sent Harvey Norman shares surging with most of its rivals. "That's flowed on to David Jones, Wesfarmers, Woolies and JB Hi Fi," Hancock said.
On Sunday, Harvey told reporters: "Our sales this year are going to be an absolute record, this is going to be the biggest Christmas we have ever had, we are going to break all records."
Harvey Norman shares finished A22c, or 5.19 per cent, higher at A$4.46 while David Jones climbed A13c, or 2.3 per cent, to A$5.78, and Wesfarmers jumped A50c or 1.71 per cent to A$29.75. Woolworths advanced A8c, or 0.29 per cent, to A$28.08 and JB Hi-Fi lifted A80c, or 3.6 per cent, to A$23.
Stronger iron ore volumes expected by Rio Tinto, with BHP Billiton's comments that it was unlikely to launch a second bid for its rival, prompted a A$2.56 or 3.59 per cent jump in Rio Tinto's shares to A$73.78, Hancock said. BHP Billiton's shares advanced A43c, or 1.07 per cent, to A$40.46.
Hancock said investors also made a big switch out of banks on the perception the Reserve Bank of Australia would decide next month to leave the official cash rate on hold. "[People think] they will push back when the rate rises are going to occur, probably until February or March," he said.
The financials sector finished down 0.01 per cent.
ANZ Banking Group added A15c, or 0.69 per cent, to A$21.90 and Commonwealth Bank firmed A4c to A$52.80. But Westpac fell A5c to A$24.15 and National Australia Bank eased A29c, or 1.01 per cent, to A$28.40.
Oil stocks were mixed with Oil Search easing A1c to A$5.86, Santos down A1c at A$15.01 and Woodside Petroleum firming A2c to A$48.71.
Gold stocks continued to advance as the spot price of gold in Sydney touched US$1163.00 a fine ounce, up US$17.90 from Friday's closing price of US$1145.10.
"It's a fear of where else to put your money," Hancock said. "There's been a massive swamping of the equity markets with money over the last six months and that at some point has got to ease and gold is another alternative investment."
Lihir Gold jumped A12c, or 3.35 per cent, to A$3.70, Newcrest Mining rose A$1.16 or 3.24 per cent to A$37 and Newmont Mining firmed A3c to A$5.75.
Elsewhere, shares in building products supplier James Hardie Industries surged A47c, or 6.35 per cent, to A$7.87 after the company reported a net loss in the first half of the financial year.
But James Hardie said full-year earnings should still enable it to contribute to its asbestos compensation fund.
- AAP
Retailer's talk-up boosts Oz market
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