The Australian share market has closed nearly 1.5 per cent higher as bargain-hunters moved in to buy stocks beaten down on Wednesday.
CMC Markets chief market strategist Michael McCarthy said overseas sellers seemed to be absent on the local bourse on Thursday and there was a little bit of bargain-hunting going on in some sectors.
“It’s been a big bounce back,” Mr McCarthy said.
“But if we take the view that yesterday’s selling was a little overdone, I’d suggest that today’s buying was also a little overdone.
“It illustrates the uncertain nature of the market at the moment and the strong disagreement that continues in the market as to the near and medium-term direction.”
On Wednesday, the benchmark index of the top 200 companies fell two per cent, following disappointing manufacturing data from China and the US Federal Reserve’s recent decision to keep its benchmark interest rate on hold.
On Thursday, among the major banks, the Commonwealth rose 90 cents to $72.50, Westpac advanced 39 cents to $30.36, National Australia Bank added 40 cents to $30.20, and ANZ put on 35 cents at $27.34.
In the resources sector, global miner BHP Billiton firmed five cents to $22.85 as US-based asset manager Blackrock, which had been its biggest single shareholder, sold its five per cent stake in the company.
Rio Tinto was climbed 31 cents to $48.30, and Fortescue Metals dipped 2.5 cents to $1.785.
Oil and gas producer Santos fell three cents to $4.82 after it announced it had started production from its GLNG liquefied natural gas project on Queensland’s Curtis Island.
Building products group Brickworks was off 13 cents at $15.24 as the company’s annual net profit declined 24 per cent to $78.1 million.
KEY FACTS
* At 1616 AEST on Thursday, the benchmark S&P/ASX200 index was up 73.6 points, or 1.47 per cent, at 5,071.7 points.
* The broader All Ordinaries index was up 69.8 points, or 1.39 per cent, at 5,102.3 points.
* The December share price index futures contract was up 64 points at 5,059 points, with 30,812 contracts traded.
* National turnover was 1.49 billion securities worth $4.56 billion.