The Australian share market has broken its four-day losing streak this morning, surging 80 points or 1.4% after a strong performance from global equity markets overnight.
Strong earnings results helped spur a rally in technology stocks, driving the NASDAQ index 1.2% higher, while a ceasefire agreement between Russia and the Ukraine helped ease global tensions, resulting in a 1% and 0.6% rise for the S&P 500 and Dow Jones indices, respectively.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is now sitting just shy of a six-year high at 5,824 points and is being lifted by these four companies in particular.
Rio Tinto Limited (ASX: RIO) announced a US$2 billion share buyback program after the market closed on Thursday, in addition to a 12% increase in its full-year dividend. Although underlying earnings were heavily impacted by crashing iron ore and copper prices, investors embraced the capital management decision and have bid the stock up by 4.2% in early trade, representing a gain of $2.50 per share.
BHP Billiton Limited (ASX: BHP) has also jumped 3.1% to $31.64 per share. While a 3.4% rise in the oil price overnight will be a contributing factor to the stock's ascent, it's also likely that investors are simply hopeful of a similarly strong earnings result to that of Rio Tinto. BHP Billiton will report its interim results on Tuesday, 24 February.
Commonwealth Bank of Australia (ASX: CBA) has made a return to the black today, jumping 0.6% to $91.69. Yesterday, data from the Australian Bureau of Statistics revealed that the unemployment rate had risen to an alarming 6.4%, drastically increasing the likelihood of another interest rate cut when the RBA meets next month. That would indicate a greater appetite for dividend stocks amongst investors, thus pushing Commonwealth Bank's share price higher.
Telstra Corporation Ltd (ASX: TLS) shares rose 1.4% to $6.54 early in the session. The telecommunications behemoth announced the reactivation of its dividend reinvestment plan (DRP) yesterday due to popular shareholder demand which will allow shareholders to reinvest their dividends into the business, saving on brokerage costs and other transaction fees.