SYDNEY, AAP – Australia’s share market has climbed to the highest level in its history as traders look ahead to a COVID-19 vaccinated world.
The main index, the ASX200, reached its record intra-day high in the first 10 minutes of trading on Monday.
The index has since bettered that level and rose to 7203.3 points.
CommSec analyst Steven Daghlian said investors had travelled a rocky road.
The market was at record levels in February last year before the coronavirus pandemic prompted a sharp downturn in trading.
Mr Daghlian said there were a few reasons why the ASX had since climbed to new heights.
Governments around the world were pumping money into their economies to help them recover from coronavirus recesssions.
Interest rates were also low. The cash rate at which banks in Australia can borrow remains at a record low 0.1 per cent.
Thirdly, and perhaps most importantly, was the development of coronavirus vaccines last year.
“We’ve received vaccines much sooner than we expected,” Mr Daghlian said.
“In the big picture, few were expecting a number of vaccines to be viable at this point.”
The vaccines have given investors hope the world economy may one day be free from the threat of lockdowns.
Meanwhile the All Ordinaries index on Monday also notched its highest level.
The index of the top 500 companies rose to 7448.3.
At 1127 AEST, the ASX200 was higher by 3.8 points, 0.05 per cent, to 7183.3.
The All Ordinaries was down 0.6 points, or 0.01 per cent, to 7423.4.