Australian shares continued to rally at three-month highs, with broad-based gains from the financial, energy and mining sectors.
At the close on Wednesday, the benchmark S&P/ASX200 index was up 21 points, or 0.5 per cent, at 4,312.6, while the broader All Ordinaries index was up 21.5 points, or 0.56 per cent, at 4,332.9.
On the ASX 24, the September share price index futures contract was 24 points higher at 4,272 with 21,270 contracts traded.
CommSec analyst Juliette Saly said investors were increasing their appetite for risk following positive news from US and European sharemarkets last night.
“We’re seeing a third straight session of gains on the back of… more hope that the European Central Bank is going to start delivering stimulus to the global economy soon in the form of government bond buying,” she said.
But Ms Saly said the market was experiencing thin trading volumes and it was volatile to major price movements from big companies.
“Even though we are seeing gains, we could have a big fall from a big company like BHP and that could impact on the overall market as well,” she said.
Among the mining giants, shares in Rio Tinto closed up four cents to $54.89, just before it reported a 34 per cent drop in its underlying first half profit to $US5.2 billion ($A4.95 billion).
BHP Billiton rose 12 cents to $32.28, while Fortescue Metals rose 2.73 per cent to $4.52.
Among the major banks, Westpac gained 45 cents to close at $24.13, ANZ was up nine cents at $23.75, National Australia Bank was 32 cents higher at $25.62 while Commonwealth Bank was the standout performer, shooting up 77 cents to $57.59.
In local equity news, the nation’s biggest cattle producer Australian Agricultural Company rose two cents to $1.14 after it unveiled a first half loss of $4.1 million, a significant improvement on the corresponding period last year.
Retail and property developer Stockland slumped 17 cents to $3.24, disappointing investors with its annual net profit of $487 million, which was down from last year.
Computershare lived up to market expectations reporting a 42 per cent reduction in profit due to weakened corporate activity.
Its shares closed 46 cents higher, or 1.80 per cent, to $8.00.
In local economic news, Australian Bureau of Statistics data showed housing demand appeared to be stronger despite the number of home loans approved in June rising less that the market expected.
Total housing finance rose by 1.3 per cent in June, after a 1.2 per cent fall in May.
Economists had forecast a two per cent rise for June.
National turnover was 1.54 billion shares worth $4.4 billion with 526 stocks up, 360 down and 356 unchanged.
