The Australian sharemarket shook off a sluggish start to etch out a small gain on Wednesday, once again led by the big banks and Telstra, while investors turned their attention to the United States Federal Reserve meeting overnight.
Disappointing earnings results from Wall Street heavyweights Caterpillar and Microsoft and weak US durable goods data weighed on the Australian market in early trade, before higher-yielding stocks led an afternoon turnaround.
The benchmark S&P/ASX200 rose just 5.6 points, or 0.1 per cent, to 5552.8, chalking up its fifth straight day of gains. The broader All Ordinaries added 5.1 points, or 0.1 per cent, to 5516.6.
The US Federal Reserve's interest-rate setting committee was set to meet overnight and markets were expected to be watching for any indication on the timing of a possible rate hike.
In local economic data, underlying inflation came in at 0.7 per cent in the fourth quarter and 2.2 per cent year-on-year, which had all but taken a February rate cut off the table, JBWere executive director Mike Kendall.said.
"I think people are maybe forming the view that the Australian economy is holding up a little bit better than what was previously anticipated," Mr Kendall said.
Positions are now being taken up ahead of reporting season in February, so with dividends on offer, investors are looking for opportunities to buy into weakness on yield stocks, Mr Kendall said.
Among the banks, Commonwealth Bank lifted 0.1 per cent to a new closing high of $87.70 and Westpac pushed 0.3 per cent higher to $34.68. ANZ gained 0.2 per cent to $32.64, while National Australia Bank rose 0.1 per cent to $35.20.
Yield-hungry investors kept piling into Telstra, pushing the telco's shares up another 0.8 per cent to a fresh 13-1/2-year closing high of $6.49.
Iron ore dipped for the fifth straight session on Tuesday, following a 4.3 per cent plunge on Monday. Iron ore is now fetching $US63.50 a tonne, it's lowest point since May 2009.
Among the major miners, BHP Billiton was roughly flat at $28.94, Rio Tinto ended the day 0.3 per cent higher at $56.98 and Fortescue Metals slipped 1.9 per cent to $2.04.
Mount Gibson confirmed a $950 million of write-downs in the first half of the 2015 financial year as the troubled iron ore miner struggles with the price plunge in the steel-making ingredient. Mount Gibson shares finished flat at 23¢.
Oz Minerals jumped 4.9 per cent to $3.61 following a new partnership with the South Australian government which will see the miner move from Melbourne to Adelaide. The South Australian government will also looking at helping to fund infrastructure for Oz Minerals. Chief executive Andrew Cole also confirmed that Oz Minerals has exceeded its full-year copper production guidance.
UBS analyst Simon Mitchell put out a bullish note on Qantas, forecasting the carrier will deliver a $1 billion underlying profit this year, thanks to the lower fuel price, and also raised his target price to $4. Qantas shares finished Wednesday 4.2 per cent higher at $2.48.
Goldman Sachs upgraded Crown Resorts to a 'conviction buy' with a price target of $17.50 following positive gaming numbers from Macau. Crown shares surged 7.5 per cent to $13.20.
Vocation chief executive Mark Hutchinson will step down from the faltering education company after it revealed it would plunge to a $27 million loss for the first half of the current financial year. Vocation shares were put into a trading halt on January 19 and last traded at 25¢ – they traded as high as $3.40 in September last year. Shares are expected to remain in a trading halt for another two weeks while the company works out new financial arrangements with its bankers.
Bradken shares plunged 35.8 per cent to $2.64 after takeover talks with private equity players Pacific Equity Partners and Bain Capital Asia ended. The mining services group has "ceased all discussions" following a takeover proposal received in December for about $5.10 a share. Bradken blamed volatility in commodity and financing markets for the collapse in talks.
Aurizon coal haulage volumes fell 2 per cent in the final quarter of the 2014 calendar year, however, the rail company maintained its full-year guidance for between 210 million tonnes and 220 million tonnes. Aurizon shares lifted 1.7 per cent to $4.88.
Sims Metal shares gained 1.2 per cent to $11.25 after it announced plans to sell its stake in Chinese metal recycler Chilho-Tiande for $73 million. It will sell its 16 per cent stake to unidentified third parties.
