AUSTRALIAN shares rose to an all-time high on Thursday, with most sectors trading in positive territory ahead of a long holiday weekend, as investors remained optimistic after cooling price pressures bolstered hopes of an interest rate cut.

The S&P/ASX 200 index rose 1% to 7,894.10 by 0044 GMT. The benchmark has risen 2.6% so far in March, heading for a fifth straight monthly gain, and is up nearly 3.8% so far in the quarter.