The Australian sharemarket has taken flight this afternoon following the Reserve Bank of Australia's surprise decision to slash interest rates. Citing slow growth, a high unemployment rate and a still-high Australian dollar, the central bank cut rates to a record low of 2.25%.
The S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) surged more than 1.6% after the announcement, climbing to a fresh six-year high at 5,717.5 points. Indeed, it's now less than 5% away from breaching the key 6,000 level.
However, a number of stocks managed to climb much higher than the index itself. Here are four stocks that dominated today's session:
- BHP Billiton Limited (ASX: BHP) extended its resurgence today, climbing another 3.55% to $30.65. While the iron ore price managed to recover marginally overnight, climbing 24 US cents to US$62.45 a tonne according to the Metal Bulletin, it was the sharp recovery in the oil price that triggered BHP's strong rise. The oil price has now recovered 11% since Friday giving investors confidence that the price may have finally hit a bottom.
- Senex Energy Ltd (ASX: SXY) has also benefited from the commodity's sudden recovery. While the stock was fetching 82.7 cents back in March last year, it fell more than 72% to just 23 cents per unit. It now finds itself back at 33 cents after having risen 15.8% in today's session.
- Mortgage Choice Limited (ASX: MOC) shares rose immediately after the Reserve Bank's decision at 2:30pm (AEST). Mortgage Choice is a mortgage broking company which helps its customers find the best mortgages to suit their own individual needs. Lower interest rates could spark more demand for the company's services, resulting in an 8.9% surge late in the session.
- Commonwealth Bank of Australia (ASX: CBA) had fallen 0.9% earlier in the session but has since recovered to be trading 1% higher for the day. It recorded a fresh all-time high at $90.58, presumably because of its generous dividend yield after the RBA slashed interest rates further. At its current price, the stock is expected to yield 4.7% this financial year, fully franked.
