The Australian share market closed higher on Wednesday, buoyed by bargain-hunters who helped to make up ground from the previous day’s loss.
Official figures showing slower than expected wages growth helped calm inflationary expectations and also provided a boost for investors.
At 1615 AEST the benchmark S&P/ASX200 index was 56.6 points, or 1.33 per cent, higher at 4,303.9, while the broader All Ordinaries index was 54.5 points, or 1.26 per cent. up at 4,371.8. On the ASX 24, the September share price index futures contract was up 48 points at 4,276, with 54,777 contracts traded.
Macquarie Private Wealth director Lucinda Chan said Australian Bureau of Statistics’ wages data for the June quarter grew by a less than expected pace. She said this showed an easing of inflationary pressures and made it more likely the Reserve Bank of Australia would keep interest rates on hold next month.
“That’s one reason why the market got a little bit excited today, plus we had some strong earnings from companies,” she said.
Ms Chan said that with world markets slowing and a resolution to the US and European debt crises still a long way off, any greater gains on the market would be limited.
“We lost a lot over the last week, a huge amount in the market. We’ve seen a bit of bargain-hunting today and that has lifted the market. We’ve recovered the losses we made yesterday,” Ms Chan said.
Shopping centre owner Westfield Group rose six cents to $8.20 despite posting a 32 per cent fall in half-year profit.
Among energy stocks, Woodside Petroleum gained 44 cents to $37.76 despite an 8.1 per cent dip in first half net profit. Fellow oil and gas producer Santos was up 21 cents at $12.14 and Oil Search was seven cents stronger at $6.48.
Among the miners, BHP Billiton gained 39 cents to $39.82 and Rio Tinto was $1.03, or 1.4 per cent, higher at $74.42.
The major banks closed higher, making up losses in early trade, with Westpac up 26 cents to $20.51 a day after posting a two per cent fall in third-quarter cash earnings due to slowing credit growth.
Building materials manufacturer Boral slid 19 cents to $3.69 despite revealing full year net profit of $167.7 million after the previous year’s loss but said the outlook for the US housing sector remained poor.
Transport group Brambles was up 29 cents at $6.93 after announcing plans to offload its information management subsidiary and use the proceeds to reduce debt and invest more than $US500 million ($A478.65 million) on its pallets operations.
National Australia Bank was 15 cents up at $23.36. ANZ gained 23 cents to $20.58 and Commonwealth Bank was 57 cents higher at $47.40.
At 1615 AEST, the price of gold in Sydney was $US1,789.9 per fine ounce, up $US20.57 from Tuesday’s local close at $US1,769.33.
Shares in gold miner Newcrest Mining were up 39 cents at $39.09.
Preliminary national turnover was 2.08 billion shares worth $5.58 billion, with 641 stocks up, 373 down, and 371 were steady.
