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MELBOURNE - The Australian stock market closed higher on Wednesday, after the local resources sector strengthened on the back of improved commodity prices.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was up 37.0 points, or 0.99 per cent, at 3,779.7, and the broader All Ordinaries index added 39.0 points, or 1.06 per cent, to 3,728.2.
On the Sydney Futures Exchange, the March share price index futures contract was 41 points higher at 3,757 on a volume of 17,650 contracts.
ABN AMRO Morgans private client adviser Craig Walker said the resources sector had been boosted by some recovery in prices for base metals.
"I just think that people have just come to the realisation that they (resources stocks) have been overdone (oversold)," Mr Walker said.
Investors were also hunting for bargains.
"I think we're just seeing a bit of a recovery of sorts.
"People are getting stuck into some of the blue-chips given they have taken such a hiding."
He said the market appeared to be stabilising.
"A lot of people are starting to become increasingly confident that the low in the market may well have passed, and people are starting to focus on some of the positive things out there."
In the resources sector, global miner BHP Billiton rose 90 cents, or 2.84 per cent, to $32.60 while Rio Tinto increased $3.51, or 8.08 per cent, to $46.93.
Oil and gas supplier Woodside Petroleum was 16 cents richer at $38.77.
Santos improved seven cents to $15.21.
Santos and Apache Energy are resuscitating a mothballed gas project off Western Australia to supply gas to a $5.2 billion iron ore project under a new US$585 million (A$811.2 million) deal.
Among the major banks, National Australia Bank firmed 15 cents to $20.89 as it raised US$2.5 billion (A$3.51 billion) from US investors in the biggest Australian government-guaranteed bond deal.
ANZ Banking Group eased five cents to $15.35, Westpac dipped 16 cents to $16.87, and Commonwealth Bank sagged 52 cents to $28.95.
On Wall Street overnight, the Dow Jones Industrial Average index added 62.21 points to 9,015.10.
In the gold sector, Newmont scraped off one cent to $5.47, Newcrest retreated $1.91 to $29.69, and Lihir shed three cents to $2.61.
The price of gold at 1620 AEDT was US$857.10 per fine ounce, up US$6.80 on Tuesday's close of US$850.30.
Retailer Woolworths was down 48 cents at $25.62 as it said it would cut its Everyday Money Credit Card interest rate by 100 basis points.
Wesfarmers, which owns Coles, jumped $1.09 to $19.47.
Telco Telstra put on three cents to $3.76, and Optus-owner Singapore Telecommunications dropped seven cents to $2.42.
In the media sector, News Corp ascended 17 cents to $14.36 and its non-voting scrip picked up 21 cents at $13.46.
Consolidated Media gave away two cents to $2.03, and Fairfax added 7.5 cents to $1.72.
Among other stocks, Leighton Holdings fell $1.20 to $23.80 as analysts said the company had overlooked the potential impact of the mining sector slow-down and a softer Dubai construction market in its downgraded earnings guidance.
The top-traded stock by volume was minerals explorer and producer Admiralty Resources, with 121.74 million shares worth $4.64 million changing hands.
Admiralty was 0.6 cents lower at 3.4 cents.
Preliminary national turnover was 1.59 billion shares worth $3.41 billion, with 599 stocks up, 324 down and 255 unchanged.
- AAP
