Australian shares have gained ground for the first time in a week, recovering from a hefty selloff on Tuesday.
The benchmark S&P/ASX200 index closed 0.38 per cent higher, with strong gains in yield stocks such as banks and Telstra leading a modest turnaround from the slide to two-month lows earlier in the week.
Westpac gained 42 cents to $29.12, National Australia Bank added 15 cents to $26.40, ANZ lifted 16 cents to $26.01 and Commonwealth Bank was 66 cents higher at $70.16.
The lift in Australian shares came despite falls in the US overnight, where the Dow Jones Industrial Average dropped 1.4 per cent, and a drop in oil prices that weighed on the energy sector.
IG chief market strategist Chris Weston said some of the US losses had already been priced in ahead of local trading, and the positive mood was driven by the impending expiry of equity options on Thursday and “brave souls” seeing value and buying.
“If you look at the common theme today it’s all been yield,” Mr Weston said, pointing to gains in Telstra – which gained 13 cents to $5.07 – the banks and real estate investment trusts.
Company news was light on Wednesday, but Medibank Private gained four cents to $2.56 as its recently installed CEO announced an executive reshuffle that includes the departure of CFO Paul Koppelman.
KEY FACTS:
* The benchmark S&P/ASX 200 index was up 19.9 points, or 0.38 per cent, at 5,227.7 points.
* The broader All Ordinaries index was up 16.6 points, or 0.31 per cent, at 5,326.6 points.
* The September share price index futures contract was up 39 points at 5,233 points, with 118,000 contracts traded.
* National turnover was 2.68 billion securities traded, worth $7.5 billion.
