The share market is on track for its strongest one day gain in more than six months.
The market has surged on the back of a rise in commodity prices and indications by the US central bank that its interest rates would remain on hold for some time to come.
The mining and energy sectors were the strongest performers, but all sectors were higher, sending the All Ordinaries index up 1.6 per cent by 1200 AEDT.
If those gains are maintained in afternoon trade, it will be the strongest session for the market since mid-June.
The price of industrial commodities such as copper and oil rose overnight, while Wall Street surged on the Federal Reserve’s statement it can remain “patient” before moving to raise interest rates.
Head of trading at Quay Equities, Tristan Knell, said the gains were also being driven by many traders covering short positions – buying back borrowed securities to realise the gains made on short trading.
“It was a broad based rally on traders covering shorts, while you feel a few long term investors were also looking to get set, in particular in commodity stocks, which have been heavily sold down in recent weeks,” he said.
In the mining sector, BHP Billiton was up 84 cents at $28.35, Rio Tinto was up $1.685 at $55.065 and Fortescue Metals had gained 17.5 cents to $2.525.
Among energy stocks, Woodside Petroleum shares were up 98.5 cents at $36.485, Santos had added 47 cents to $8.05 and Oil Search was 38 cents higher at $7.68.
The banks were higher despite downbeat forecasts for the local economy from ANZ and NAB at their annual general meetings.
ANZ shares shares were up 54 cents at $31.01, NAB was up 59 cents at $31.94, Westpac had added 45 cents to $31.78 and Commonwealth Bank was 85 cents higher at $81.87.
Flight Centre was one of the worst performers, down $2.90, or 8.3 per cent, at $32.14 after downgrading its profit forecast because of weakness in its Australian operations.
KEY FACTS
* At 1215 AEDT on Thursday, the benchmark S&P/ASX200 index was up 86.3 points, or 1.67 per cent, at 5,248.2 points.
* The broader All Ordinaries index was up 82.6 points, or 1.61 per cent, at 5,221.1 points.
* The December share price index futures contract expired at midday, 26 points higher at 5,191 points, with 12,441 contracts traded.
* The March share price index futures contract was 85 points higher at 5,205 points with 25,721 contracts traded.
* National turnover was 981 million securities worth $3.6 billion.
