Banks lead market leap to 10-year high

THE Australian share market is at its highest level in more than 10 years — despite Telstra’s plunge — as the major banks soared.

The ASX200 gained 70.5 points, or 1.16 per cent, to 6172.6 points, while the All Ordinaries added 65.7 points, or 1.06 per cent, to 6274.6.

Australian Stock Report head of research Chris Conway said he was surprised by the market’s strong performance given weak leads from the US and European markets.

“The bulls just decided that today was going to be the day, and once we were through 6150 points, it’s been fairly strong,” he said.

“It’s that little piercing in the dam wall. Once a little bit of water starts to leak through, then all of a sudden it brings in more buying and it builds on itself.”

Mr Conway said the ASX200 could hit 6250 points “within quick time”, though the rally could be derailed by global issues, primarily the prospect of a trade war between the US and China.

Commonwealth Bank and Westpac were the best performing banks, gaining 2.9 per cent, while ANZ added 2.7 per cent and National Australia Bank was 1.9 per cent higher.

The healthcare sector also rose for a second straight day, with CSL adding 1.1 per cent to a fresh high of $193.81.

And the Australian dollar was back near 74 US cents.