Investors were happy to keep snapping up blue chip stocks on Wednesday, while the Australian dollar shrugged off a hawkish edge to the US Federal Reserve minutes to push above US73¢.
A bump in the oil price boosted energy stocks and telcos outperformed the rest of the market, while investors shunned listed real estate names.
The benchmark S&P;/ASX 200 Index rose 0.3 per cent to 5753.3 points and the broader All Ordinaries Index advanced a similar percentage to 5805.1 points.
Traders were largely preoccupied with following the gyrations of the Chinese yuan, with trading volumes light on the local bourse.
Minutes from the US Federal Reserve's Federal Open Market Committee proved fairly positive on the US economy after the November election of Donald Trump provided support for banking stocks; the big four banks all lifted 0.3 per cent to 0.9 per cent.
Despite a dip in the iron ore price on Wednesday night to $US77.25 a tonne, resource giants BHP BIlliton and Rio Tinto closed up 0.1 per cent and 0.2 per cent, respectively, although Fortescue Metals declined 0.2 per cent.
Telstra has enjoyed buying support in recent times, as investors pick through the ASX 200 and collect the blue chips. On Thursday the telco giant closed up 0.8 per cent.
In other equities news, the spat among the Bellamy's board persists, following a shareholder revolt designed to rid the company of some key executives. The share price has been frozen at $6.68 since December 9 and has given way to some other market gyrations within the infant formula sector.
But the gloom surrounding Bellamy's has not extended to a new entrant to the infant formula market. Bubs Australia, which reverse-listed last Tuesday at 10¢ per share, added another 63 per cent on Thursday and has since tripled in value, showing there is still vibrant investor interest in the baby formula business.
Stock Watch: TPG
Shares in TPG bumped up 2.3 per cent to $7.20 after Credit Suisse upgraded the telco provider to "neutral" from "underperform". TPG's stellar share price run came to an end in September when it became clear the heavy cost of delivering data over the national broadband network was going to place pressure on the company's balance sheet. Last month, Australia's second biggest fixed-line internet provider said it would spend as much as $381 million to expand its business and to become the fourth mobile network operator in Singapore.
Market Movers
US Fed Minutes
The minutes of the meeting where the US Federal Reserve's board approved the first interest rate increase in a year showed just how concerned the Federal Open Market Committee was about the fallout from Trump's election victory. While the minutes didn't mention the President-elect by name, the impact of his policies on financial markets and the economy was discussed extensively. The committee minutes revealed a marginally more hawkish tone. At its last meeting, the Fed unanimously approved a quarter-point increase, pushing the target rate for its short term lending standard between 0.5 per cent and 0.75 per cent.
Petrol
Drivers may want to fill up at the servo in coming days with Australian petrol prices set to surge.The consumer watchdog says petrol prices are on the rise after OPEC's decision last month to cut production. Australian Competition and Consumer Commission chairman Rod Sims said the falling $A was also likely to push up the prices consumers pay for fuel in Australia. ACCC research shows that traditionally petrol prices rise sharply before Christmas, to then drop off, and then to creep higher again in late January.
Yuan
China's offshore yuan was hovering around a one-month high in late afternoon trade on Thursday, after Chinese authorities stepped in to onshore and offshore markets to provide support in the face of a strengthening $US. The offshore yuan rate surged the most in a year as traders scrambled for a currency that's becoming increasingly scarce outside the nation's borders. Surging funding costs have forced yuan short-sellers to square positions and stop losses. The overnight yuan borrowing rate in Hong Kong has been higher since the Christmas holiday. In 2016, the yuan weakened 6.63 per cent against the dollar, its biggest move since 1994.
Asian stocks
Shares around the region were a mixed bag as traders digested the minutes from the US Federal Reserve Meeting. The MSCI Asia Pacific Index rose 1.5 per cent, while the Japanese Nikkei slid 0.5 per cent. Shares in South Korea slipped 0.1 per cent and New Zealand's S&P;/NZX Index was broadly flat. In late trade, Hong Kong's bourse was up 1.3 per cent, but mainland Chinese shares were marginally lower.