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The sharemarket rally is showing no signs of slowing as bullish investors rush to pour money back into equities.

Cheered by Commonwealth Bank’s strong half-year results, investors pushed the benchmark S&P/ASX200 index past the psychological barrier of 5000 points today - its highest since April 2010.

The ASX climbed 44.7 points, or 0.9 per cent, to close at 5003.7, after rising as high as 5013.6 points in morning trade. The stock exchange last closed above 5000 points almost three years ago.

The broader All Ordinaries Index also ended strongly higher, reaching 5024.5 points - an increase of 0.9 per cent, in morning trade.

EL & C Baillieu Stockbroking director Richard Morrow said the bullish ASX was a consequence of money flowing back into the equity market, where one could "get the best bang for your buck".

"It's a classic re-weighting of the relationship between the investment returns available through fixed interest, and the investment returns available through the equity market,” he said.

The market has rallied since 10-year-bonds fell to a low of about 2.6 per cent in mid-2012, Mr Morrow said.

“Equities, especially high-dividend paying blue-chip equities like banks - the dividend yields are just becoming very desirable because of the relative rate of return, especially on an after-tax basis.”

Leyland Private Asset Management senior portfolio manager Rohan Schmidt said he expected the ASX to continue in bullish territory for the rest of the week, with the other big banks likely to follow in Commonwealth Bank's footsteps.

"I am certainly of the opinion that if Commonwealth Bank can pull out a result such as this, the other banks will follow and it's going to be a good feeling for the market," Mr Schmidt said.

The market’s displeasure with some of the other earnings reports posted today - such as those from Ansell and Domino's Pizza - were of less consequence as they did not have as much of an impact on the Australian share market as Commonwealth Bank, he added.

Another sector of the market that was faring well was mining services, Mr Schmidt said.

"There was a lot of concern coming into the reporting season about mining services companies," he said.

"[But] with the iron ore price recovery, and encouraging results from Bradken, the first major one out of the block, we are seeing a follow-on yesterday and today in the general mining services sector."

But JBWere executive director Mike Kendall said investors were not getting carried away by the ASX200’s gain, and instead exercising caution as they dipped their toes back into the equities market.

‘‘It’s a question of balance. People are getting a bit more confident so they are putting a bit more money back in the market. But I think most investors have their feet firmly planted on the ground and are playing their cards very carefully at the moment,’’ Mr Kendall said.

‘‘[Investors] are putting a little bit in and then standing back and watching. I don’t think there’s anyone running around being a wild cowboy in this market. I think there has been to many lessons in the past three or four years.’’

Mr Kendall said the increasing level of confidence about reduced risks in the global economy has led investors to move some of their money away from low-yielding returns such as cash and bonds over the past few months.

At the same time, the start of the earnings season had so far shown that Australian companies were ‘‘delivering  fairly solid levels of profitability in the main’’, he said.

‘‘As a result of that, with some confidence around earnings and some cautiously optimistic outlook comments, we have seen investors say there could be a little bit of earnings movement to justify the lift in share prices and ... build on the improved global confidence.’’