The Australian share market has lifted modestly as investors gain in confidence and await a catalyst for stronger movement.
CMC Markets chief market analyst Ric Spooner said markets across the region were mostly higher on Wednesday.
“It just seems to be a little bit of confidence creeping into markets generally,” Mr Spooner said.
“We’re just starting to see a little bit of buying now because the market has stopped falling and the buyers are a bit concerned they might miss out.”
Mr Spooner said there was support for the resources sector despite flat commodity prices.
Global miner BHP Billiton’s latest production report had helped boost sentiment.
Mr Spooner said markets were poised at the moment, waiting for a catalyst to drive towards a good close for the year or to go in the opposite direction.
That catalyst could be the US Federal Reserve giving an indication that it will lift US rates in December.
“If they (the US Fed) are going to increase rates in December, I think they will begin to prepare the market for that possibly at their October meeting,” Mr Spooner said.
In the resources sector, BHP Billiton was 24 cents higher at $24.23 after it posted solid production growth in the first quarter of the financial year, lifting iron ore output by seven per cent.
Rio Tinto was up 64 cents at $52.78, and Fortescue Metals added 14 cents to $2.49.
Gold miner Newcrest jumped 31 cents to $14.42.
Banking stocks were mixed. National Australia Bank eased four cents to $31.72, ANZ found 16 cents at $28.56, Westpac dumped 10 cents to $30.75, and Commonwealth Bank ascended eight cents to $75.81.
Health Insurer Medibank Private was off six cents at $2.49. Medibank is searching for a new chief executive as it strives to retain customers and stop them downgrading cover amid rising costs.
KEY FACTS
* On Wednesday, the benchmark S&P/ASX200 index was up 12.7 points, or 0.24 per cent, at 5,248.3 points.
* The broader All Ordinaries index was up 14.9 points, or 0.28 per cent, at 5,286.5 points.
* The December share price index futures contract was up 26 points at 5,239 points, with 22,442 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1,176.10 per fine ounce, up $US6.25 on Tuesday’s price of $US1,169.85.
* National turnover was 2.1 billion securities worth $4.7 billion.
