Banks Bounce Back

Buyers were out in force today, snapping up stocks that looked oversold in the calm light of a new week and a positive lead from Wall Street.

The banks, which had dropped as much as 5% roared back into life, easily recouping the previous trading day’s losses.

Macquarie Group (ASX:MQG) gained $2.66 or almost 6% to $48.00. The National Australia Bank outclassed even that stellar percentage rise closing up $1.61 to $28.62. Westpac climbed $1.01 to $24.14 with ANZ up 96c to $22.15 and the Commonwealth Bank up $2.20 to $52.80

Newcrest Mining (ASX:NCM) lost 14c to $36.79 on reports from the World Gold Council that demand had dropped, relative to the previous year. But Lihir Gold shrugged off the news and gained 3c to $3.60. BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) closed at $41.30 and $71.66 respectively.