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Commodities gain gives backbone to Aussie market's crack above 5,000 points

SYDNEY
2016-02-22 13:55

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The Aussie benchmark managed to crack above 5000 points on Monday as commodities gains provide a backbone for the market trending climb.

At Monday's close, the benchmark S&P/ASX200 index was up 48.4 points, or 0.98 percent at 5,001.2 points while the broader All Ordinaries index was 48.3 points, or 0.96 percent higher at 5,056. 6 points.

Monday's gains reversed Friday's 0.79 percent loss to continue the market's trending gains following its strongest week since November 2015 last week, up 3.9 percent. A stronger iron ore price continued the ongoing improvements in mining stocks despite the weaker oil price overnight, which gave BHP Billiton a good lead into its half-year earnings report on Tuesday where its expected significant measures will be undertaken to strengthen the company's balance sheet to avoid a credit downgrade, CMC Markets chief market analyst Ric Spooner told Xinhua.

Spooner said the Aussie market was also supported by gains in Japan's Nikkei and China's equity markets which followed through for a positive close.

BHP Billiton surged 3.43 percent, rival Rio Tinto rallied 3.21 percent, however gold miner Newcrest slipped 0.25 percent as the risk-on mood continues.

Energy stocks were mixed after the benchmark Brent crude started to find buyers late in the session, with Oil Search up 1. 68 percent, Santos closing flat while Woodside Petroleum falling 1. 35 percent.

The Commonwealth Bank of Australia gained 1.10 percent, the National Australia Bank edged 0.16 percent higher and Westpac was 1.07 percent stronger, however ANZ slipped 0.34 percent.

Wesfarmers lifted 0.94 percent while Woolworths was up 0.26 percent. Qantas added 0.76 percent and Telstra closed flat.

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