A rally in energy stocks led by Woodside Petroleum has given the Australian share market a substantial boost.
Nearly all sectors, except gold and consumer discretionary, are in positive territory with the biggest gains coming from the oil and gas sector.
The local bourse has reversed Tuesday’s losses after oil prices rose modestly overnight and energy giant Woodside Petroleum’s profit results met expectations, optionsXpress market analyst Ben Le Brun said.
“It has been a nice return to form for the market led by the energy sector with the banks following close behind,” he said.
“This shows that yesterday’s selling was a little bit over done.”
Shares in Woodside Petroleum rose 81 cents to $32.86, despite its first half profit falling 39 per cent because of lower oil and gas prices.
Other oil stocks were also firmer, with Santos up 20 cents at $6.04, Oil Search 14 cents better off at $6.54 and Origin Energy 50 cents higher at $9.89.
As for the banks, Commonwealth Bank climbed $1.36 at $78.27, Westpac had added $1.05 to $32.71, NAB had gained 82 cents to $32.58 and ANZ had risen 87 cents to $29.84.
Seven West Media shares were slightly higher at 0.5 cents at 82 cents despite announcing a $1.887 billion full year loss following major writedowns to the value of its TV assets.
Shares in Treasury Wines, the owner of the Penfolds and Wolf Blass brands, rose 74 cents to $6.25 after it said it had returned to profit thanks to a lower Australian dollar that had helped lift earnings by 22 per cent.
But shares in online job search company Seek dived more than 10 per cent, or $1.51, to $12.27 due to a weaker-than-expected underlying profit rise.
The Reject Shop’s shares jumped more than 16 per cent, or $1.04, to $7.40 after the retailer’s same store sales grew in the second half with expectations it will return to profit growth in the year ahead.
In the resources sector, BHP Billiton was up 18 cents at $25.16, Rio Tinto had gained six cents to $50.65, while Fortescue Metals dipped four cents to $1.945.
All eyes will turn to the US tonight for inflation data and the Federal Reserve’s minutes from its July meeting.
KEY FACTS
* At 1615 AEST, the benchmark S&P/ASX200 index was up 77.1 points, or 1.45 per cent, at 5,380.2 points.
* The broader All Ordinaries index was up 70.4 points, or 1.33 per cent, at 5,379.8 points.
* The September share price index futures contract was 73 points higher at 5,342, with 32,338 contracts traded.
* National turnover was 1.77 billion securities worth $4.99 billion.
