Shares bounce as bargain hunters swoop

The benchmark S&P/ASX200 gained 56.6 points (about 1.33%) to finish at 4,303.9, while the broader All Ordinaries rose 54.5 points (around 1.26%) to close at 4,371.8.

Both. Bargain hunters helped the market recover losses from the previous day, and official Bureau of Statistics wages data showing slower-than-expected wages growth eased inflationary concerns, which boosted investor sentiment.

Macquarie Private Wealth director Lucinda Chan said the June-quarter wages data grew less than expected, signalling easing inflationary pressures and making it more likely the Reserve Bank would keep interest rates on hold — a key reason investors became more optimistic.

Woodside Petroleum rose to $37.76 despite an 8.1% dip in first-half net profit. Santos was trading at $12.14 and Oil Search at $6.48. Major miners also lifted — BHP Billiton closed at $39.82 and Rio Tinto at $74.42 — reflecting sector strength even where companies reported profit dips.

The big banks closed higher: Westpac at $20.51, National Australia Bank at $23.36, ANZ at $20.58 and Commonwealth Bank at $47.40. Westpac’s shares rose the day after it reported a 2% fall in third-quarter cash earnings.

Shopping-centre owner Westfield Group rose to $8.20 despite a 32% fall in half-year profit. Building materials manufacturer Boral slid to $3.69 (down about 19%) despite reporting a full-year net profit of $166 million.

The Sydney gold price closed at US$1,787.15 per fine ounce, up US$17.82 from the prior local close. Gold miner Newcrest Mining was trading at $39.09, rising on the session.

The market rebound was driven by bargain hunting and cooler-than-expected wages growth, which reduced near-term inflation worries and the likelihood of immediate rate rises. However, market strategists cautioned that with global markets slowing, any further gains may be limited — so investors should weigh short-term rallies against broader economic trends.