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The Australian sharemarket pushed higher after Wall Street surged overnight, with the local bourse racking up its best session in two weeks.
The benchmark S&P/ASX200 index firmed 0.78 per cent to 7308.7, while the All Ordinaries Index gained 0.73 per cent to 7580.9.
It came after US markets jumped 1.5 per cent, bouncing back from steep falls at the start of the week.
CommSec said the gains were broadbased, with energy stocks the standout in early trade, while materials, banks and healthcare were ultimately the best improvers.
Oil Search put on 3.59 per cent to $4.04 amid speculation the messily handled departure of chief executive Keiran Wulff on Monday gave takeover suitor Santos a better chance of scoring a deal without having to pay too much.
It also emerged during a conference call about the executive’s resignation that Oil Search no longer expected to progress its Pikka oil project in Alaska – led by Dr Wulff – in the second half of 2021, although Anchorage Daily News cited a local spokeswoman as saying a final investment decision was still targeted for 2021.
“We recognise Oil Search and Santos are engaging constructively towards a merger, however considering the challenges Oil Search’s board are facing in the wake of Dr Wulff’s sudden resignation as CEO this week, Santos may feel it has positive leverage in these discussions,” UBS analysts said.
Santos lifted 1.23 per cent to $6.57.
Beach Energy, however, dropped 3.2 per cent to $1.21 after issuing its June quarter activities report showing a dip in production compared to the previous quarter.
“Whilst marginally below our forecast, revenue was higher than the last quarter, supported by higher realised prices across crude and sales gas, and benefiting from higher sales volumes due to third party sales,” Ord Minnett said.
In the mining sector, Pilbara Minerals advanced 5.5 per cent to $1.53, while fellow lithium miner Orocobre rose 3.42 per cent to $6.96.
Rio Tinto put on 1.17 per cent to $125.87 after finally reaching an agreement with Bougainville community members, represented by the Human Rights Law Centre, to identify and assess legacy impacts of the former Panguna copper mine, where operations ceased in 1989.
