The Australian stock market bounced back after a weak opening as bullish investors decided that it had fallen far enough in recent weeks.
The ASX200 lost 6.4 per cent in value in September but has risen the last two days.
The 0.8 per cent rise on Wednesday came despite weak overnight leads from the US and Europe and regional Asian markets falling during the day.
CMC Markets chief market analyst Ric Spooner said the price falls had made the yields on high dividend paying companies including the big banks and Telstra attractive again.
“It is pretty appealing if you don’t think we’re in a disaster scenario,” he told AAP.
The biggest rise out of the 20 largest stocks was Westfield shopping centres owner Scentre, which rose 10 cents, or 3.1 per cent, to $3.38.
The Commonwealth Bank was 91 cents higher at $76.20, while ANZ gained 51 cents to $31.43, National Australia Bank lifted 29 cents to $32.83 and Westpac was up 32 cents at $32.46.
Resources sector stocks mostly fell as it emerged that raw materials prices had posted their worse quarter since 2008.
BHP Billiton finished 12 cents higher at $33.99, Rio Tinto fell 32 cents to $59.26 and Fortescue Metals declined two cents to $3.46.
KEY FACTS
* At the close on Wednesday, the benchmark S&P/ASX200 index was up 41.3 points, or 0.78 per cent, at 5,334.1 points.
* The broader All Ordinaries index was up 37.7 points, or 0.7 per cent, to 5,334.5 points.
* The December share price index futures contract was up 39 points at 5,322 points, with 37,585 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,207.90 per fine ounce, down $US8.50 on Tuesday’s closing price of $US1,216.40.
* National turnover was 1.7 billion securities worth $4 billion.
