The Australian share market closed sharply higher, buoyed by a return to confidence from overseas investors and solid earnings results.
At 1615 AEST on Tuesday, the benchmark S&P/ASX200 index was up 91.1 points, or 2.23 per cent, at 4,173.4, while the broader All Ordinaries index was 89.1 points, 2.15 per cent, higher at 4,239.9.
On the ASX 24, the September share price index futures contract was up 91 points at 4,167, with 46,729 contracts traded.
RBS Morgans director of equities Bill Chatterton said confidence was creeping into the market from investors in Asia and from a positive reporting season that had generally met expectations.
The best performing stock was Caltex Australia, which rose 42 cents, or 4.3 per cent, to $10.26 after it almost doubled its first half profit to $270 million, boosted by higher oil prices.
“It’s just a vindication that the quality businesses in the market are doing what they said they’d do,” Mr Chatterton said.
“They haven’t all delivered, but a lot of them have delivered on expectation. With that, the market and the fund managers are a little more comfortable to spend some money.”
Brewer Foster’s Group was nine cents higher at $4.99 after saying a pick-up in consumer confidence and a return to normal weather should return the sector to flat to moderate growth even though it reported a full-year loss of $89 million.
Origin Energy closed 68 cents higher at $14.16 after full-year profit fell by 70 per cent.
The energy provider said underlying profit was expected to increase by 30 per cent in the current year.
Sonic Healthcare dropped 23 cents or 2 per cent to $11.29 after the company forecast 15 per cent earnings growth after a flat full year profit in 2010/11.
Among the banks, ANZ was up 52 cents at $19.82, Westpac was 70 cents higher at $20.06, National Australia Bank was 70 cents up at $22.91, and Commonwealth Bank gained $1.11, or 2.42 per cent, at $47.01.
BHP Billiton was up 68 cents at $38.21 and Rio Tinto was $1.52 higher at $70.10.
At 1615 AEST, the price of gold in Sydney was $US1,889.60 per fine ounce, up $US2.85 from Monday’s local close at $US1,892.45.
Shares in gold miner Newcrest Mining were up 35 cents, or 0.87 per cent, at $40.55.
Preliminary national turnover was 2.27 billion shares worth $5.98 billion, with 676 stocks up, 355 down, and 342 were steady.
