Australia: Shares close higher as CBA boosts financials

[BENGALURU] Australian shares closed more than 1 per cent higher on Monday, as top lender Commonwealth Bank boosted financials, and energy and gold stocks climbed on strong underlying commodity prices.

The S&P/ASX 200 index rose 1.3 per cent to 7,287.5, starting the week on a strong note after four straight weeks of losses.

The market also benefited from a strong Wall Street session at the end of last week, as investors entered the final quarter of 2021 in a buying mood.

Commonwealth Bank of Australia notched its best session in a year and a half and was the top gainer on the bourse with a 5.1 per cent jump, after completing an oversubscribed off-market buy-back of about 67.7 million shares for A$6 billion (S$5.92 billion).

Heavyweight financials climbed 2.6 per cent in their best session since January, with National Australia Bank, Australia and New Zealand Banking Group and Westpac Banking rising between 1.9 per cent and 2.2 per cent.

Financials stood out, said Damian Rooney, director of equity sales at Argonaut, adding the market rallied following the big move in the United States on Friday.

"September was a pretty miserable month for markets in general, so people are hoping October will start with a clean sheet," said Mr Rooney.

Australian energy stocks added 1.4 per cent, with major oil and gas explorers Santos Ltd and Woodside Petroleum ending 1.7 per cent and 1.6 per cent higher, respectively.

Meanwhile, the country's health minister, Greg Hunt, said the Delta outbreak appeared to have levelled off, with more than half the country in extended lockdowns and vaccination rates starting to approach national targets.

New Zealand's benchmark S&P/NZX 50 index closed 0.4 per cent higher at 13,337.27.

Prime Minister Jacinda Ardern extended the level 3 lockdown in the country's biggest city Auckland, but said some restrictions will ease.

REUTERS