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SYDNEY - The Australian share market witnessed a remarkable recovery this afternoon, trading into positive territory after spending most of the day in the red.
At the 1615 AEST close, the benchmark S&P/ASX200 index was up 28.6 points at 6372, while the all ordinaries added 28.1 points to
6393.4.
On the Sydney Futures Exchange, the June share price index futures contract was 30 points firmer at 6378 on a volume of 119,140 contracts.
The market had spent much of today below Monday's close, weighed down by a poor performing US market and mixed commodities prices.
But the market shifted around 1400 AEST, with the resources the stars, CMC Markets markets analyst David Land said.
"From about 2 o'clock the buying momentum really took hold, and we saw that push the market higher," Mr Land said.
"It was pretty broad-based movement, with a number of sectors in positive territory.
"There's a lot of focus again today on the resources, particularly looking at the energy sector, with stocks like Woodside and Santos performing very well. That's a result of the recent strength we've been seeing in the crude oil price."
Mr Land said it was hard to pinpoint an exact spark for the recovery, saying the increased buying seemed to accelerate once the bourse tipped into the black.
"It was interesting just how quickly that momentum shifted," Mr Land said.
"Once it actually got into positive territory, that's when the buying really started to accelerate. Once that selling pressure was removed and the market saw that it was pushing into positive territory."
On the New York Mercantile Exchange last night, July crude rose USA$1.09, or 1.6 per cent, to settle at USA$69.09 a barrel.
Local energy stocks were were buoyed by the rise in crude price, with Woodside Petroleum climbing 90 cents to A$46.85 and Santos 47 cents to A$14.44.
However, Oil Search fell two cents to A$4.26.
Mixed metal prices on overseas markets initially subdued the miners, with Rio Tinto backing away from the A$100 record set yesterday.
But by noon it had again passed the A$100 mark, before reaching a high of A$102.15 by mid-afternoon.
Rio closed up A$1.16 to A$101.15.
BHP Billiton finished up 24 cents to A$34.92, after the miner declined to comment on media reports that it was considering a takeover bid for either Alcan Inc or Alcoa Inc.
Shares in the major banks were all higher, despite starting the day relatively flat.
ANZ rose 15 cents to A$29.42, Westpac 22 cents to A$25.92, the National Australia Bank 20 cents to A$41.23, and the Commonwealth Bank 10 cents to A$55.40.
The telcos were little changed, as politicians, analysts and media commentators continued to pick over the competing plans for the roll out of a faster broadband network.
Shares in Telstra added two cents to A$4.76 after an initial slump in the morning.
Optus owner Singapore telecommunication was unchanged at A$2.64.
Among media stocks the Ten Network was the story of the day, with Canadian CanWest Global Communications Corp announcing that it intended to take control of the television provider by converting its 56 per cent economic but non-voting stake into a voting stake.
Previously, foreign media companies such as CanWest were limited by law to a 15 per cent voting stake in Australian media companies.
Shares in Ten fell three cents to A$2.94.
Rival network Seven gained 18 cents to A$11.34, while part owner of Channel Nine, Publishing and Broadcasting Ltd, added 14 cents to A$19.29.
Fairfax edged forward five cents to A$4.83.
Competing publisher News Corp relinquished five cents to A$28.10, and its non-voting stock 18 cents to A$26.02.
Drugs maker and pharmacy services provider Sigma Pharmaceuticals Ltd and a private equity consortium led by Carnegie Wylie have made a formal bid for the consumer and pharmacy services divisions of Symbion Health Ltd for an enterprise value of A$1.085 billion.
Under the bid, Sigma intends to acquire Symbion's consumer business, which includes vitamins and health supplements, and the consortium, referred to as the CWC Entity, would acquire Symbion's pharmacy services business.
Shares in Sigma rose one cent to A$2.32, while target Symbion was unchanged at A$4.27.
Healthscope Ltd, which has made a A$2.9 billion cash-and-scrip bid for Symbion, gained six cents to A$5.52.
The spot price of gold was US$656.60, down US$3.75 on yesterday's close.
The gold miners were mostly unchanged.
Newcrest added 30 cents to A$24.01, Lihir Gold three cent to A$3.16, but Newmont dropped four cents to A$4.73.
The top traded stock by volume was property company Investa Property Group, with 176.28 million shares changing hands at a value of A$528.7 million.
Shares in the company were unchanged at A$3.00.
Preliminary market turnover was 2.23 billion shares worth A$7.57 billion, with 604 companies ending higher, 738 lower and 362 unchanged.
- AAP