The Australian share market rose to a record 12 month high on Wednesday. (Sergio Dionisio/Getty Images)
The benchmark S&P/ASX200 index closed up 45.4 points, or 0.95 per cent, at 4831.1, while the broader All Ordinaries added 44.2 points, or 0.92 per cent, to 4834.
It was the highest close for the S&P/ASX200 since September 26, 2008 and the highest for the All Ordinaries since September 29, 2008.
On the Sydney Futures Exchange, the December share price index contract was 44 points higher at 4837, on a volume of 22,922 contracts.
IG Markets analyst Ben Potter said the market was supported by a jump in consumer sentiment.
"Just when it seems confidence and sentiment can't get any higher, it does," Mr Potter said.
The Westpac-Melbourne Institute index of consumer sentiment rose 1.7 per cent to 121.4 points in October, from the September result of 119.3.
Mr Potter said the market was also boosted by positive trading updates from Rio Tinto, CSL and Ansell.
Miner Rio Tinto said there were early signs of a recovery in its key commodity markets and increased its forecast for full year global iron ore production.
Rio Tinto jumped $1.06, or 1.7 per cent, to $63.25, while BHP Billiton added 16 cents to $38.40.
In energy, Woodside Petroleum gained 98 cents, or 1.9 per cent, to $52.63, Santos added 31 cents, or 2.06 per cent, to $15.36, and Oil Search closed steady at $6.69.
Among the major banks, Commonwealth Bank gained $1.32, or 2.46 per cent, to $54.97, Westpac added 49 cents to $26.80, ANZ was up 16 cents at $24.80, and National Australia Bank lifted 44 cents to $31.92.
In the gold sector, Lihir gained 13 cents to $3.33, Newcrest Mining added 84 cents to $37.10, and Newmont was up 11 cents at $5.28.
The spot price of gold closed in Sydney at $US1068.87 per fine ounce, up $US13.04 on Tuesday's closing price of $US1055.83.
In the retail sector, Wesfarmers gained 45 cents to $26.90, Woolworths was up 38 cents at $29.23, Harvey Norman gained 10 cents to $4.64, and The Reject Shop jumped 18 cents, or 1.44 per cent, to $12.68.
JB Hi-Fi gained 92 cents, or 4.97 per cent, to $19.42 after saying it was encouraged by signs of consumer confidence and expected sales to jump this financial year.
Condoms and gloves maker Ansell said its first quarter was stronger than expected and that earnings per share for 2009/10 would come in at the top end of expectations.
Ansell gained 17 cents to $10.60.
CSL said first quarter trading was in line with expectations, but warned foreign exchange rates may affect its annual profit.
CSL lifted 29 cents to $32.00.
The most traded stock by volume was Focus Minerals with 368.8 million shares worth $22.1 million changing hands.
Its shares were up 0.3 cents, or 5.56 per cent, at 5.7 cents.
Market turnover was 3.7 billion shares worth $5.1 billion, with 671 stocks up, 445 down and 345 steady.
