Australian stocks: Market edges higher

The Australian share market has closed marginally higher after receiving some support from banking stocks and some miners.

The benchmark S&P/ASX200 index was up three points, or 0.08 per cent, at 3,941.7, while the broader All Ordinaries index had gained 7.5 points, or 0.19 per cent, to 3,919.6.

On the Sydney Futures Exchange, the June share price index contract was 17 points higher at 3,930 on volume of 18,966 contracts.

IG Markets research analysts Ben Potter said the local market gained ground during the day after opening lower.

"The last couple of hours have produced an impressive, Friday afternoon rally, reminiscent of the old bull market days," Mr Potter said.

"It shows how well supported our market is.

"Participants can't risk waiting for more of a pullback.

"Instead, they're just folding and paying up at current market prices."

The Reserve Bank of Australia released its quarterly monetary policy statement on Friday, cutting its forecasts for the pace of economic growth over this year and 2010 while signalling any future interest rate cuts may be smaller and less frequent, ahead of an expected recovery.

National Australia Bank gained 66 cents to $22.78, Westpac was up 29 cents at $20.60 and Commonwealth Bank had advanced 66 cents to $36.74, while ANZ had shed 14 cents to $16.49.

BHP Billiton lost 38 cents, or 1.06 per cent, to $35.31, while rival mining giant Rio Tinto had gained 56 cents to $71.60.

- AAP