The Australian share market has clawed back some of its recent losses, ending the session one per cent higher as investors flocked to defensive stocks after a mixed bag of company earnings results.
Healthcare, telecom and property companies found support amid concerns about the global economic outlook.
The resource sector was sold off ahead of Rio Tinto’s results after the close of trade in Australia, Bell Direct equities analyst Julia Lee.
“While the market is gaining, it is on the back of defensive sectors so healthcare, telecom and property trusts, which are those traditional defensive sectors,” Ms Lee said.
“That usually tells you that the strength of the move is a weak one. So while there is selective buying happening and certainly an impact from earnings season, overall it does look like the trades are tending towards more defensive areas of the market that do tend to perform well during times of volatility.”
Trading volume was still light following a pretty benign performance on Wall Street overnight, she noted.
With the local earnings season in full swing, hearing implant supplier Cochlear delivered market-beating interim results, strong dividend and bullish guidance.
Cochlear shares rallied $12.87, or 14 per cent, to $104.05.
The top four banks all gained ground, with ANZ up 29 cents to $22.71, Westpac rose 26 cents to $28.79, National Australia Bank finished 18 cents higher at $24.60 and the Commonwealth Bank closed 10 cents higher at $74.30.
Mining giants BHP Billiton and Rio Tinto came under pressure, following falls overnight in oil prices and some base metals, including copper.
BHP closed 41 cents or 2.62 per cent lower at $15.24 and Rio Tinto fell 52 cents to $40.99.
After the market closed, Rio announced a full year net loss of $US866 million ($A1.22 billion).
KEY FACTS:
*The benchmark S&P/ASX200 index was up 45.4 points, or 0.95 per cent, at 4,821.1 points.
* The broader All Ordinaries index was up 44.4 points, or 0.92 per cent, at 4,870.9 points.
* The March share price index futures contract was 57 points higher at 4,767, with 33,488 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1,206.30 per fine ounce, up $US7.50 on Wednesday’s price of $US1,198.80 per fine ounce.
* National turnover was 1.91 billion securities traded, worth $4.27 billion.