The Australian share market has been pushed higher by gains in energy and resource stocks.
The S&P/ASX200 index closed up 29.5 points at 5372.3 points despite a decline in financial stocks.
Macquarie Private Wealth analyst Lucinda Chan put Wednesday’s strong trade down to a lift in overnight oil prices flowing through the market.
“I think the market overall did open up firm and it continued to stay that way, did slightly slip at midday but it picked it all back up,” Ms Chan said.
“Oil prices had a good lift, that certainly helped oil sector stocks which was obviously the weaker end yesterday. Commodity and resources improved on the back of that.”
Ms Chan said positive investor sentiment pointed towards further gains on Thursday, despite the recent volatility of both oil and iron ore prices.
“As a whole, the momentum is looking good,” Ms Chan said.
“I think markets have been pretty solid in the last few days.”
Among the resource companies, BHP Billiton was the standout performer, spiking 72 cents or four per cent to close at $18.55, while rival Rio Tinto lifted 61 cents or 1.34 per cent to $46.01.
Fortescue Metals also performed strongly, lifting six cents or 2.1 per cent to $2.91.
Ms Chan said BHP, whose CEO Andrew Mackenzie said on Wednesday that the company could boost its current value by more than 70 per cent, had seen the worst of heavy share price losses over the past week.
“Overall, the portfolio should hold well. Opportunities are there for them and they can probably maintain their strength,” she said.
In energy stocks, Santos lifted three cents or 0.74 per cent to $4.06, Woodside Petroleum rose one cent to $26.54 and Origin Energy gained a cent to $5.08.
The banking sector closed out the day steady after opening trade strongly.
Westpac was up one cent to $31.31, Commonwealth Bank lost one cent to $77.99, NAB slid back four cents to $28.88 and ANZ fell 27 cents or 1.09 per cent to $24.43.
Ms Chan said Australian Bureau of Statistics housing data released on Wednesday, showing the number of home loans approved in March fell 0.9 per cent, had a negligible impact on the bourse.
“I think it’s positive given interest rates are so low, personally, but I’m not too sure it has driven the market,” she said.
Shares in Fairfax Media lifted 4.88 per cent to 86 cents after the company announced it was considering merging its New Zealand operations with APN. APN shares are currently in a trading halt.
KEY FACTS:
* At the close on Wednesday, the benchmark S&P/ASX200 index was up 29.5 points, or 0.55 per cent, at 5372.3 points.
* The broader All Ordinaries index was up 30.9 points, or 0.57 per cent, at 5434.8 points.
* The June share price index futures contract was 26 points higher at 5360, with 36,369 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,272.33 per fine ounce, up $US6.63 or 0.52 per cent on Tuesday’s price of $US1,266.70.
* National turnover was 3.36 billion securities traded, worth $6.7 billion.
