THE Australian share market closed firmly in the black with small-to-medium cap resources stocks leading the charge as investor concern about the proposed tax regime on miners took a back seat for the day.
The benchmark S&P/ASX200 index was up 54 points, or 1.2 per cent, at 4,559 points, while the broader All Ordinaries index rose 54.5 points, or 1.21 per cent, to 4,572.1 points.
On the Sydney Futures Exchange at 4.20pm AEST, the June share price index futures contract was 44 points higher at 4,566 points, with 79,679 contracts traded, according to preliminary calculations.
City Index market strategist Michael McCarthy said the local bourse held on to most of the gains seen in early trade after breaching the significant 4,500-point level on Tuesday.
Early gains were driven by a strong performance on Wall Street and higher commodity prices overnight.
"What we're seeing is a fair bit of technical buying ... a lot of people are taking back shorts if not going long," Mr McCarthy said.
"This move has signalled a change in direction from down to up and people who trade off the back of charts are one of the main drivers today.
"We have pulled back a little but are still holding on to substantial gains."
Mr McCarthy said small-to-medium cap resources stocks had pushed the market higher.
"It's the small to medium stocks that are really making the gains today ... across the sectors but certainly in resources.
"Renewed confidence has seen people pile back in after panicking over the prospect of a new tax regime."
This grouping included Aquila, despite Brazilian joint venture partner Vale warning that Aquila's actions could cause delays at their Eagle Downs coal project in Queensland.
Shares in Aquila were up 36 cents, or 4.17 per cent, at $8.99.
Other strong performers included Centennial Coal after Thai-based Banpu increased its stake in the miner to become its largest shareholder.
Whitehaven Coal also rose amid an increased focus on Australia's smaller coal miners following recent consolidation activity in the sector.
Centennial Coal shares were up 18 cents, or 4.04 per cent, at $4.64 while Whitehaven Coal put on 29 cents, or 6.29 per cent, to $4.90.
