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Bears remain on holiday as Australia's market rallies to new high

Xinhua, January 3, 2017 Adjust font size:

The bears are still on holiday as Australia's market hits the highest level since June 2015 on the first day of 2017 trade.

On Tuesday the benchmark S&P/ASX 200 index was up 67.4 points, or 1.19 percent at 5,733.2 points, while the broader All Ordinaries index was up 65.5 points, or 1.15 percent, at 5,784.6 points.

"There was a bit of debate this morning whether we would follow the weaker U.S. lead or go with the European moves on Monday, being the major markets open then, and we've gone the European way (higher)," CMC Markets chief market analyst Ric Spooner told Xinhua.

"The good solid reading on the (Chinese private) Caixin PMI certainly helps, its good to see another solid performance from the domestic side of China's economy, overcoming a fairly flat performance in the export sector."

The market is prime however for a pull back despite the positive tone from the end of the New Year carrying on as stocks become over valued.

"We're vulnerable to any minor bad news, or no good news in the not too distant future," Spooner said.

On Tuesday the Commonwealth Bank of Australia lifted 0.68 percent, the National Australia Bank rose 1.27 percent, Westpac added 1.07 percent and ANZ rallied 1.71 percent after divesting from Shanghai Rural Commercial Bank.

BHP Billiton surged 1.60 percent, rival Rio Tinto was 1.80 percent stronger while gold miner Newcrest slipped 0.30 percent.

Oil Search and Santos were flat while Woodside Petroleum bounced 1.25 percent.

Wesfarmers and rival Woolworths were 1.35 percent and 1.12 percent stronger respectively.

Qantas climbed 1.50 percent while telecom giant Telstra was up 1.18 percent. Endit