The sharemarket closed stronger today as the All Ordinaries broke past the 4600-point psychological barrier and the dollar edged higher.

The benchmark S&P/ASX 200 index rose 34.3 points, or 0.76 per cent, to 4575.5 points at close of trade, while the broader All Ordinaries gained 38.1 points (0.83 per cent) at 4615.7 points.

CommSec market analyst Juliette Saly said US jobs figures on Friday had helped spur local investors.

“Our market rose about 4 per cent over the course of last week, and it is nice to see more momentum,” Ms Saly said.

It was also significant that the All Ordinaries had gone above the psychological 4600 point barrier, she said.

Financials were mainly stronger, but investment bank Macquarie bucked the trend to fall $1.74 (4.7 per cent) at $35.25 after it said its first-half profit would likely fall by 25 per cent.

But the big four banks all posted solid gains – Commonwealth Bank was up 55 cents at $52.12,Westpac rose 28c at $22.78, National Australia Bank lifted 18c at $24.28 and ANZ gained 37c at $23.66.

The Australian dollar nudged higher in a quiet Asia session, and trading was expected to remain subdued due to a Labor Day holiday in the US, Dow Jones Newswires reported.

The positive risk tone was buoyed by the US jobs number and should hold for at least the early part of this week, said Morgan Stanley Strategist Emma Lawson.

The major focus is on tomorrow’s Reserve Bank of Australia policy meeting. While the central bank is expected to leave the cash rate unchanged at 4.5 per cent, much will be read into its accompanying commentary.

Also in focus will be whether Australia reaches agreement to form a new minority government, with a decision by three key non-party lawmakers also due tomorrow.

Before then, CMC Markets Trader Tim Waterer said the local unit would take its direction from metals and stock prices.

He pegs support for the Australian dollar at US90.50 cents, and resistance at US92.20c.

“If equity markets continue to run higher, then US92c can be hit this week, and US92.50c is on the cards, depending upon how robust Thursday’s employment numbers are,” Mr Waterer said.

At 0600 GMT, the Australian dollar was at US91.70c, up from US90.79c late Friday. Against the Japanese yen, the Australian dollar was at Y77.375, from Y76.475.

For bond futures, the three-year contract fell 13 ticks to 95.43 on the better tone, while 10-years fell nine ticks to 95.07.

Back in equities, insurers were less impressive, with investors fearful about exposure to the 7.1 magnitude earthquake that hit Christchurch early on Saturday.

Suncorp-Metway fell 3c (0.35 per cent) to $8.58, despite reaffirming full-year earnings guidance.

Insurance Australia Group pared back early losses to rise 1c to $3.48 at the close.

The materials sector was nearly 1 per cent higher, with gains to big miners, including a small rise to BHP Billiton, despite the world’s largest resources company going ex-dividend. BHP Billiton shares were 22c higher at $38.55.

Ms Saly said the gold sector had a good day, with Norton Gold Fields jumping 20 per cent to 21c after it completed a litigation settlement.

Gold explorer Andean Resources gained nearly 10 per cent to $7, after it emerged from a trading halt following a takeover bid from Goldcorp Inc.

The energy sector was mixed, but Cougar Energy had a positive day, jumping nearly 23 per cent to 3.8c, after it struck a deal with the Queensland government that could see its Kingaroy coal gasification pilot plant reopened.

Qantas shares fell 1c to $2.52 on the weight of a High Court ruling that could force the carrier to pay back millions of dollars in commissions to travel agents.

Retirement-village owner Aevum put on 3.5c at $1.74, after it said an expert report supports its view that the unsolicited takeover bid by rival Stockland was not high enough.

(Source: TheAustralian.com.au)