Australia Shares End up 1% Before ANZ Results

Australian shares rose the most in two weeks, setting a fresh five-year high Monday as global equity markets continued to benefit from expectations of sustained quantitative easing by the Federal Reserve. Banks continued to soar before ANZ kicks off the bank reporting period early Tuesday.The benchmark S&P/ASX 200 closed up 1% at 5441.4 after rising to 5457.3,Vintage tubs and share trading value soared to 6.5 billion Australian dollars (US$6.2 billion) versus the 200-day moving average of A$4.4 billion.tyre equipmentsReflecting broad-based demand for a diverse mix of companies, Commonwealth Bank of Australia, ANZ Bank, National Australia Bank, CSL Limited,Clawfoot tub faucets Macquarie Group, Fortescue Metals, Brambles, Santos and Insurance Australia rose between 1.5% and 4.%4Vintage tubs."Momentum continues to be very strong," said Goldman Sachs institutional dealer Richard Coppleson. He noted that the S&P/ASX 200 had risen 11 of the past 14 trading days, helping generate a 4.3% rise for the month so far.The rise in Australian shares this month was nonetheless in line with strength in global markets, underscoring the fact that most of the gains have been driven by expectations that the prospect of sustained quantitative easing and low interest rates from the Fed will continue to push money into equities. 

Traders said Australian banks have been particularly attractive before upcoming dividend payments in the sector, and that the market was primarily being driven by the weight of money, rather than cheap valuations."People are chasing large bank dividends, too many people were hoping to buy at the 5000 level still have not pulled the trigger and too many of the key S&P/ASX 200 stocks remain clearly bullish on technical view," said Shaw Stockbroking investment adviser Shawn Hickman. "But the most important point is the weight of money. There's a lot of cash out there."On a technical basis, the S&P/ASX 200 broke a major resistance level at 5426--the 61.8% Fibonacci retracement of the fall from the 2007 peak at 6851 to the 2009 trough at 3120.Among stocks that weakened,quantum magnetic analyzer Navitas Limited, an education services provider, fell 9.4% after releasing fiscal 2014 earnings guidance which missed market expectations.