ANZ, Commonwealth Bank, Westpac and NAB shares rise as investors seem relieved measures were not harsher

This article is more than 1 year old

This article is more than 1 year old

Australian shares rallied at midday led by the big four banks, with investors seemingly relieved that the financial services royal commission had not recommended harsher measures.

ANZ was up 6.5%, Commonwealth Bank added 4.69% and Westpac increased 6.36%.

NAB rose 3.91% after its chief executive, Andrew Thorburn, said on Tuesday morning he had cancelled the remainder of his two months’ leave and added he was “more determined than ever” to lead the bank’s response to Kenneth Hayne’s report.

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The benchmark S&P/ASX200 index was up 124.4 points, or 2.1% at 6015.6 by close of play, while the broader All Ordinaries was up 105.1 points, or 1.7%, at 6,068.1.

Mortgage brokers were left battered after the Hayne report recommended reforms to trailing commissions, with Mortgage Choice down more than 25% and Australian Finance Group losing more than 29%.

Shares in IOOF Holdings, one of the fund managers that could be open to possible criminal or civil proceedings after it featured in the report, jumped 8%.

AMP, which has lost more than half its market value since its serious misconduct was made public at the royal commission, was up 9.95%.

The mining sector joined the broad rally by midday, with BHP up 1.11%, Rio Tinto up 2.99% and Fortescue Metals up 4.7%.