The share market closed nearly one per cent higher, boosted by a positive session on Wall Street and confidence the resources sector will continue to improve.
New York’s Dow Jones Industrial Average hit an all-time high on Tuesday, driven by strength in the financial industry.
OptionsXpress market analyst Ben Le Brun said almost all sectors of the local market enjoyed gains, with the exception of energy producers weighed down by weaker oil prices.
“There’s a continued rally in the resources and materials names. I think that’s expectation of what we’re going to see in the not-too-distant future: namely, a continued recovery across the resources space,” he said.
A confirmation of earnings guidance from TPG Telecom also reassured the market, Mr Le Brun said.
TPG shares gained 47 cents, or seven per cent, to $7.22.
Weaker-than-expected GDP figures hurt the Australian dollar but had a muted impact on the share market, Me Le Brun said.
Among the major banks, ANZ gained 42 cents to $28.80, Westpac improved 47 cents to $31.48, Commonwealth Bank lifted $1.29 to $79.30, and National Australia Bank advanced 31 cents to $29.01.
BHP Billiton added 25 cents to $25.73, Rio Tinto gained $1.69 to $60.83 and Fortescue Metals was 27 cents higher at $6.58.
Mineral sands miner Iluka Resources strengthened 29 cents to $6.91 as it revived a $375 million takeover of Sierra Leone miner Sierra Rutile, a week after the deal fell under a cloud due to geotechnical risks at the target’s tailings dams.
KEY FACTS:
* The benchmark S&P/ASX 200 index added 49.4 points, or 0.91 per cent, to 5,478.1 points.
* The broader All Ordinaries index gained 48.8 points, or 0.89 per cent, to 5,535.4 points.
* The December share price index futures contract was up 53 points at 5,481 points, with 26,333 contracts traded.
* National turnover was 2.9 billion securities traded, worth $6.1 billion.
