Gains by energy stocks have pushed the share market modestly higher, but most of the major banks are still feeling pain.
Sentiment appeared to have improved since Tuesday’s sharp fall, IG market analyst Angus Nicholson said.
“The fact that we’re seeing a bit of gain in the oil price overnight and then also into the Asian session is being seen as a bullish signal,” he said.
“Certainly, the energy sector is the strongest performer by far today on the index.
“The banks seem to be a pain point all of their own on the index, but the rest of the index is moving very strongly higher today.”
Investors are concerned that mortgage delinquencies could grow, which would hurt the banks, Mr Nicholson said.
News of Federal Court proceedings against Westpac over alleged interest rate manipulation was also a negative factor.
Westpac dumped 45 cents, or 1.5 per cent, to $28.68, Commonwealth Bank shed 10 cents to $71.15, National Australia Bank dropped six cents to $25.50, while ANZ gained eight cents to $22.55.
In the energy sector, oil and gas producer Woodside Petroleum gained 68 cents, or 2.8 per cent, to $24.62, Santos added 14 cents, or 3.9 per cent, to $3.69 and Oil Search was 32 cents higher, up 5.3 per cent, at $6.37.
BHP Billiton added 16 cents to $16.14, Rio Tinto advanced 38 cents to $42.34 and Fortescue Metals picked up six cents to $2.60.
Troubled steel and mining group Arrium suspended trading in its shares, as the cash-starved company seeks to secure a deal with its lenders.
KEY FACTS:
* On Wednesday, the benchmark S&P/ASX200 index was up 21.5 points, or 0.44 per cent, at 4,945.9 points.
* The broader All Ordinaries index was up 24.2 points, or 0.48 per cent, at 5,024.6 points.
* The June share price index futures contract was up 24 points at 4,932 points, with 32,766 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1,227.30 per fine ounce, up $US1.60 on Tuesday’s price of $US1,225.70.
* National turnover was 2.7 billion securities traded, worth $5.1 billion.
