The Australian share market has finished higher for the third consecutive session after Monday’s huge selloff.
The gains have eclipsed one of the biggest single-session losses in recent years as investors feel calmer about Greece’s debt crisis.
Almost $40 billion was wiped off the share market on Monday as investors reacted badly to the possibility that Greece will exit the euro zone if it defaulted on its debt.
Australian Stock Report head of research Chris Conway said while Greece did miss its debt repayment to the International Monetary Fund on Tuesday, investors were more positive that a bailout resolution will come out of Greece’s referendum.
Greek people will vote on bailout conditions proposed by the country’s European creditors on Sunday, after which bailout talks are expected to resume.
“Investors and traders alike have come to realise that there will be a resolution in Greece even though we don’t know exactly what that would look like,” Mr Conway said.
“It goes to show that perhaps the selloff may have been overdone and the fear around Greece is starting to evaporate.”
Investors will also closely monitor the US non-farm payroll results due on Thursday night, Australian time.
Making news locally, shares in Bonds clothing owner Pacific Brands have surged after the company lifted its full year earnings guidance.
Its shares were up more than 50 per cent, or 16.5 cents at 49 cents.
Kathmandu’s shares was slightly lower, down 0.5 cents at $1.525, as New Zealand retailer Briscoe looks at taking over the outdoorwear chain.
There were strong gains among the big four banks.
Commonwealth Bank was up $1.43, or 1.66 per cent, at $87.45, Westpac gained 63 cents, or 1.95 per cent, to $33.01, National Australia Bank rose 57 cents, or 1.7 per cent, to $34.04 and ANZ added 41 cents, or 1.26 per cent, to $32.91.
As for the miners, BHP Billiton rose 35 cents to $27.00, Fortescue Metals gained eight cents to $1.91 while Rio Tinto lifted two cents to $53.03.
KEY FACTS
* On Thursday at 1615 AEST, the benchmark S&P/ASX200 index was up 84.1 points, or 1.52 per cent, at 5,599.8 points.
* The broader All Ordinaries index was up 81.9 points, or 1.49 per cent, at 5,587.9 points.
* The September share price index futures contract was up 66 points at 5,544 points, with 32,361 contracts traded.
* National turnover was 1.6 billion securities worth $4.55 billion.
