Although it has lost some of its earlier momentum, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has continued yesterday's rally, lifting 0.5% in mid-afternoon trading.
The local bourse has found strength from a number of sources, including a lead set by international equity markets overnight. Comments from the Reserve Bank of Australia yesterday regarding business confidence is likely also helping to boost investor sentiment, as are figures which showed exports growth matched the strongest month in nearly two years, according to The Australian Financial Review.
The resources sector benefited handsomely from that news with companies like BHP Billiton Limited (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) gaining 2.7% and 2.9%, respectively. Senex Energy Ltd (ASX: SXY) also soared 6.2%, boosted by a soaring oil price, while AWE Limited (ASX: AWE) and Sundance Energy Australia Ltd (ASX: SEA) jumped 3.4% and 4.8% as well.
The banks also picked up where they left off yesterday afternoon with all of the majors hovering in the black. Westpac Banking Corp (ASX: WBC) was the strongest of the four, rising 1.1%, while each of its rivals rose between 0.3% and 0.9%.
In the supermarket space, Wesfarmers Ltd (ASX: WES) has lifted 1% but Woolworths Limited (ASX: WOW) is flat. It's likely that investors are still reacting to the company's poor earnings results from last week, while analysts are now also questioning its ability to maintain its dividend.
The local share market has risen strongly over the last two days with investors perhaps realising that the doom and gloom had become overdone. With the ASX 200 still hovering below the 5300 point mark, I think now would be a great time to start buying shares in some of the market's high-quality companies.
