After falling yesterday, investor sentiment seemed to have improved, with the benchmark S&P/ASX 200 index closing 0.6% higher to 4147.7 points while the All Ordinaries firmed 0.5% to 4173.8 points.

While overseas markets were mostly mixed and with no major local economic data out, investors instead digested earnings predictions and production reports from some of the major machinery and mining companies, including Caterpillar and Newcrest Mining.

This underpinned gains in the industrial and basic materials sectors, which rose 0.6% and 0.1% respectively.

After recording an almost 6% jump in morning trade, investors continued to react well to Newcrest’s full-year report which revealed the company had met its full-year guidance.

Shares in the company closed 1% higher to $A22.37.

Shares in gold producer Silver Lake Resources also fared well, closing up 0.8% to $2.67 after its latest quarterly report showed it had reduced cash costs and increased production for the June quarter.

Energy Resources of Australia struggled to find ground after it reported a $59 million net loss for the first half of 2012 on the back of the challenging uranium market.

Its shares were down 0.3% to $1.47.

Most of the majors continued to post mixed results with BHP up a marginal 0.4% to $30.97 while Rio Tinto fell 1% to $50.51.

Fortescue Metals Group struggled to hold onto gains recorded yesterday, with its shares falling 2.7% to $4.

On the junior front, Sirius Resources was a standout after announcing a major nickel-copper discovery in Western Australia.

Its shares soared 690% to 45c.

A number of companies went into trading halts, including Kaboko Mining, pending an offtake and finance announcement.

Shares in Cauldron Energy were halted as it continued negotiations with the company’s convertible note holders, while NuPower Resources and Condor Blanco Mines went into halts pending capital raisings.

Finally, Paramount Mining Corporation requested a halt regarding an announcement about the legal completion of the acquisition of the Gunung Rosa project.