Australian shares ended Tuesday in a second shortened week 1% higher and 33 points away from the 2018 level last August that was the highest since before the GFC in 2008.
The ASX 200 Index rose 1% or 59.6 points, to 6,319.4 while the broader All Ordinaries also ended up 1%, or 61.2 points, at 6,411.1.
On August 29 last year, the ASX 200 hit 6,352.2.
The solid rise was driven by energy stocks after President Trump sent global oil prices higher by announcing the ending of exemptions for 8 buyers of Iranian crude from May 1.
These include India, China, Japan, and South Korea who are Iran’s major buyers of crude.
President Trump promised that Saudi Arabia and the UAE would help balance the oil market (presumably by replacing the million or so barrels currently bought by the eight countries) but so far there has been no statement from either country confirming a lift to production to fill the gap.
As a result, global oil prices rose firmly on Monday with Brent crude futures up 2.9% to $US74.04 and West Texas Intermediate up 2.3% to $US65.55.
The price of both crude benchmarks inched higher in Asian and early European trading last night.
The price spurt saw shares on Woodside Petroleum advance 2.6% to $36.56, Origin Energy finish up 3.4% at $7.57; Santos shares rose 3.1% to $7.44, Beach Energy close 4.2% higher at $2.23 while shares in Oil Search ended the session at $8.20, up 1.7%.
Shares in BHP, which has a significant oil division, saw its shares close up 0.2% at $38.33.
Gloomy forecasts about the outlook for iron ore prices didn’t help, but they closed up 2.6% on Monday at $US94.48 a tonne according to the Metal Bulletin’s 62% Fe index.
Rio Tinto shares added 1.5% to $99.21 and Fortescue Metals Group jumped 3.5% to end at $7.74, but other stocks in the sector fell.
Newcrest Mining slid 1.4% to $24.89 (despite a higher gold price), South32 shares lost 0.6% at $3.47 and Whitehaven Coal lost 1.1% to end at $4.41.
The major banks were also stronger. Commonwealth Bank shares rose 1.1% to $74.20, Westpac shares added 1.2% at $27.16, ANZ were up 1.1% to $27.08 and NAB shares edged up 0.4% to $25.36.
A number of other companies hit highs. Fund manager, Magellan Financial Group shares rose 3.2% to an all-time high of $42.08 and Woolworths were up 1.4% to $31.67, its highest level since 2015.
