THE Australian sharemarket rose yesterday, with the financial sector accounting for much of the strength, after eurozone finance ministers approved a new agreement on Cyprus and the so-called troika of international lenders.
The benchmark S&P/ASX 200 closed up 0.5 per cent at 4990.2 after hitting an intraday high of 5023.2. It was the second consecutive daily rise in the index, which had closed up 0.2 per cent on Friday after hitting a six-week intraday low of 4927.9.
Major banks rose 0.5 per cent to 1.7 per cent and Macquarie jumped 2.2 per cent, while AMP and QBE both rose 1 per cent, as investors recovered their appetite for risk.
IG Markets chief strategist Chris Weston said the gains by the four major banks had driven the market higher as investors continued their chase for high-yielding stocks.
"It was just about the banks, really," Mr Weston said.
"When you see all four big banks over 1 per cent (higher), considering their weight on our market now, it drives it up."
