The Australian share market has finished in positive territory following a rally in China, but uncertainty on global markets continues.
OptionsXPress analyst Ben LeBrun said Chinese government funds appeared to be propping up equities ahead of a national remembrance day in China on Thursday.
“It has been a turnaround,” Mr LeBrun said.
“The momentum appears to have swung and the bargain hunters picked up some stocks close to 5000 points.”
He said there had been a good turnaround from banks, health care stocks and materials but the energy sector had been problematic.
Shanghai’s stocks plunged 4.39 per cent at the beginning of the day before ending the morning 0.31 per cent higher, with analysts saying the government likely provided support ahead of a two-day World War II remembrance holiday.
Traders are awaiting a key employment report from the US overnight as weaker oil prices and a US Federal Reserve decision weigh on investors’ minds.
“Markets are gyrating all over the place at the moment and US markets are in correction territory which is adding an element of uncertainty to the global picture.”
The big banks were higher, with National Australia Bank up 30 cents to $30.70, Westpac added 22 cents to $30.42, ANZ increased 35 cents to $27.42 and Commonwealth Bank put on 33 cents to $73.63.
But energy stocks were lower following weak oil prices, with Woodside Petroleum down 52 cents to $31.10 and Santos dropped four cents to $4.75.
KEY FACTS
* At the close on Wednesday, the benchmark S&P/ASX200 index was 5.1 points, or 0.1 per cent, higher at 5,101.5.
* The broader All Ordinaries index was up 2.3 points, or 0.04 per cent, at 5,119.4.
* The September share price index futures contract was one point higher at 5,058, with 50,866 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1141.20 per fine ounce, down $US1.20 on Tuesday’s price of $US1,142.40.
* National turnover was 2.5 billion securities worth $6.8 billion.
