Aussie shares hit record as CBA beats expectations

A late rally has carried the local share market into uncharted territory after Commonwealth Bank, Suncorp, AGL and Computershare all delivered better-than-expected first-half earnings.

The benchmark S&P/ASX200 index was flat around midday but finished Wednesday up 51.3 points, or 0.6 per cent, at 8,535.3, while the broader All Ordinaries rose 48 points, or 0.55 per cent, at 8,799.6.

The ASX200's close eclipsed its previous record finish of 8,532.3, set on January 31.

Its intraday record high of 8,566.9, also set on that date, stands.

The rally came ahead of another monthly US inflation report due to be released overnight, which could set the direction of US interest rates.

Federal Reserve chairman Jerome Powell told a Senate committee on Tuesday that with the US job market strong and inflation still elevated, he and his colleagues "do not need to be in a hurry" to cut interest rates.

In response gold prices eased after hitting a record high of more than $US2,900 an ounce on Tuesday, with the yellow metal changing hands at $US2,890 around 5pm on Wednesday.

Commonwealth Bank climbed 2.4 per cent to an all-time high of $165.98, after Australia's largest company delivered a first-half cash profit of $5.1 billion, up two per cent from a year ago.

"Through supporting our customers and investing in our franchise, we have been able to deliver solid results for our shareholders, despite the weaker economic backdrop," said chief executive Matt Comyn.

VanEck senior portfolio manager Cameron McCormack told AAP the results solidified VanEck view that CBA remained overvalued.

The six per cent increase in earnings per share, Mr McCormack said, doesn't justify its 27x price-to-earnings multiple, which makes it the most expensive banks globally.

Suncorp meanwhile rose 1.3 per cent to $20.62 after the insurance company announced it made $860 million in cash earnings in the six months to December 31, up from $660 million a year ago.

The results were supported by natural hazard insurance claims coming in at $503 million, $277 million below allowance.

AGL added 0.2 per cent to $11.73 after the energy company posted a statutory profit of $97 million, while its underlying net profit dropped seven per cent to $373 million.

"We delivered a strong first-half result in line with expectations, driven by the flexibility of our generation fleet and its ability to capture higher realised electricity pricing," said managing director and CEO Damien Nicks.

Computershare was the biggest gainer in the ASX200, soaring 15.5 per cent to an all-time high of $41.53 after the share registry platform hiked its dividend by 12.5 per cent while raising its guidance.

"It is pleasing to see the Computershare results demonstrate the momentum in our high-quality, capital-light business," said chief executive Stuart Irving.

Overall, six of the ASX's 11 sectors finished higher, and four closed lower, with telecommunications flat.

The other three big retails banks also finished higher, with Westpac up 1.1 per cent to $34.65, NAB climbing 1.7 per cent to $41.11 and ANZ adding 0.7 per cent to $31.23.

In the heavyweight mining sector, Fortescue rose 1.1 per cent to $19.32, Rio Tinto dropped 0.6 per cent to $119 and BHP was basically flat at $40.14.

As could be expected given gold prices, goldminers were lower. Northern Star dropped 1.3 per cent and Newmont fell 2.5 per cent.

The Australian dollar meanwhile was buying 62.93 US cents, from 62.74 US cents at 5pm on Tuesday.

ON THE ASX:

* The benchmark S&P/ASX200 index on Wednesday rose 51.3 points, or 0.6 per cent, to 8,535.3

* The broader All Ordinaries gained 48 points, or 0.55 per cent, to 8,799.6

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 62.75 US cents, from 62.74 US cents at 5pm AEDT on Tuesday

* 96.68 Japanese yen, from 95.33 yen

* 60.75 euro cents, from 60.90 euro cents

* 50.56 British pence, from 50.77 pence

* 111.13 NZ cents, from 111.16 NZ cents