The share market has recovered more than half of the $56 billion lost on Tuesday, as the mining giant at the centre of the worldwide plunge assured investors it is financially robust.
Glencore rejected fears it is unable to withstand falling commodity prices, and its London and Hong Kong shares rebounded from Monday’s heavy losses, sparked by a negative analyst report.
World markets followed a similar trend, and all sectors of the Australian market rose to deliver an overall gain of two per cent, adding about $30 billion in value.
But the September quarter still proved the worst three month period for local investors in four years, with the market dropping 7.2 per cent, losing about $126 billion in value.
IG market analyst Angus Nicholson said recent shock news from Volkswagen, the US health and biotech sectors and then Glencore had exacerbated the impact of China’s plunging equity markets in August.
“In the wake of the worldwide sell-off in equities that began in August, global markets have been in a heightened state of sensitivity,” he said.
“Rarely does one see so many major event-driven selloffs in quick succession.” Locally, the telco sector was the best performer as Vodafone Australia struck a $1 billion deal with TPG Telecom to use its so-called dark fibre network.
TPG shares gained 72 cents, or 7.1 per cent, to $10.86, while Telstra added 12 cents to $5.61 and M2 Group rose 66 cents to $9.49.
Among the banks, Commonwealth Bank was the strongest performer, adding $2.57, or 3.7 per cent, to $72.72, while NAB gained 78 cents to $29.98, ANZ rose 70 cents to $27.08 and Westpac was 60 cents higher at $29.70.
The miners also soared, with Rio Tinto up $2.08 at $48.60 and BHP Billiton up 61 cents at $22.22.