Surging bank prices have pushed the S&P/ASX 200 to closed 1.9 per cent higher at 6005.9 points, the highest value since October last year. This is the biggest one-day gain since 10 November 2016, a year when the ASX regularly made intra-day gains of 2 per cent or more.

Westpac had the biggest gains, up 7.4 per cent to $26.70. This is the biggest one-day gain for the bank since March 2009 when it was recovering from the global financial crisis. ANZ Bank is up 6.5 per cent to $26.86 and Commonwealth Bank is up 4.7 per cent to $73.60 - taking the stock back to where it was in August 2018.

The biggest one-day gain is in insurance company Steadfast Group, up 11.5 per cent to $2.91. AMP jumped nearly 10 per cent to $2.43 and Ausdrill jumped 9.5 per cent to $1.38.

The biggest drops among the S&P200 were in Domain Holdings, down 5.2 per cent to $2.20, and Syrah Resources dropped 3 per cent to $1.46.

But among the broader market mortgage brokers were punished. Australian Finance Group ended the day 29 per cent lower at 90 cents and Mortgage Choice closed 25 per cent lower at 78.5 cents.