The Australian bourse ended slightly higher on Wednesday after a rollercoaster trade in which profit-taking impacted on gains led by offshore sentiment.

At 4.15pm (AEST) the benchmark S&P/ASX200 index was 7.7 points or 0.17 per cent higher at 4625.2 points. The broader All Ordinaries index added 9.8 points or 0.21 per cent to 4674.7 points.

On the Sydney Futures Exchange, the December share price index contract was two points firmer at 4650 points on a volume of 20,188 contracts.

IG Markets analyst David Potter said the market declined during morning trade but put in a bit of an afternoon rally, with financial, material and energy names all edging higher.

"The Dow Futures and Hong Kong's Hang Seng moving higher could have been catalysts for the mid-afternoon rally," CMC Markets institutional equities dealer Anthony Whitaker said.

Volumes remain low, however, and profit taking appears to be a significant factor, after the strong gains in recent weeks, according to IG Markets strategist Ben Potter.

Resources companies were mixed as Rio Tinto gave back 0.43 per cent to $74.90 while Fortescue Metals Group added 1.85 per cent to $4.94. Market heavyweight BHP Billiton gained 18 cents to $38.90.

Of the major banks, Commonwealth Bank of Australia backpedalled 0.22 per cent to $52.50 and Westpac Banking Corp advanced 0.98 per cent to $23.55.

ANZ Banking Group eked out 0.04 per cent to $23.81 and National Australia Bank put on 0.38 per cent to $25.86.

Investment bank Macquarie Group grew 0.88 per cent to $36.66.

Telstra was one of the worst performers on the day, as investors continue to contemplate the possible impacts and benefits from a potential deal on the national broadband network. Shares in the telco giant lost six cents or 2.21 per cent to $2.66.