The Australian share market firmed on Wednesday as healthcare, financials and materials stocks offset heavy losses booked by oil producers.
The benchmark S&P/ASX200 climbed 0.3 per cent, or 22.5 points, to reach 7257.80 points, while the broader All Ordinaries rose a similar amount, to finish at 7469.10 at the closing bell.
The Australian dollar finished lower, shedding 0.1 per cent of its value against the greenback to finish at US65.53c.
Six of 11 industry sectors finished in the green, led by healthcare stocks which rose 1.26 per cent.
Sigma Healthcare, which is merging with discount pharmacy retailer Chemist Warehouse vaulted more than 70 per cent early in trading before receding to reach $1.04 at the closing bell, up 35.947 per cent.
Traders drove shares of the iron ore miner Fortescue Metals to a record $26.78 a share, propelled by high iron ore prices which have persistently exceeded expectations
On the Singapore exchange, prices for the commodity on the December contract continue to hover around $US135 a tonne.
Simultaneously, shares for mining giant Rio Tinto reached their highest level in two years around midday at $130.84 a share before retreating to $129.5. ASX heavyweight BHP rose 0.651 per cent to $$47.87.
Updated forecasts released by Treasurer Jim Chalmers earlier on Monday showed the budget was on track for a wafer-thin deficit of $1.1bn for this financial year, in-part bolstered by soaring commodity revenues.
In a note to clients, UBS said it expected iron ore prices would continue to trade between $US100 to $US135 a tonne for the next two years.
“Over the medium term, coupled with moderating supply growth and robust steel export demand, there is upside risk to our price forecasts in 2025/26 if Chinese steel exports hold at healthy levels, China,” UBS analyst Lachlan Shaw said.
The energy sector was the worst performer across the benchmark, falling 0.75 per cent, as global crude oil prices slumped.
Brent crude traded 0.18 per cent lower to $US73.11 a barrel, while West Texas Intermediate sank 0.16 per cent to $68.50.
Locally, energy sector hector heavyweights fell. Woodside slid 1.054 per cent to $30.02, Santos fell 0.136 per cent to $7.30 and Beach Energy dropped -1.993 per cent to $1.475.
In company news, IGO shares sank 2.464 per cent to $7.52 after the lithium miner said to record a further impairment against its Cosmos nickel assets with its half-yearly results.
Shares for Orica added 1.013 per cent to $15.95. The explosives manufacturer reported positive momentum from the six months to June 30 has continued into the current financial year, with the first two months of 2023-24 financial year achieving “strong results”.
Gold miner Newmont fell 2.809 per cent to $57.42.
Following the release of fresh US inflation data, investors have let go of gold miners, with prices for the precious metal falling below $US2000 an ounce.