Aussie stocks close higher

MELBOURNE - Australian share market closed just over one per cent higher on Thursday on investor exuberance after labour data showed a steady unemployment rate.

However, brokers said also profit-takers swooped on gold stocks, and the general market was due for a downwards correction.

At 1615 AEST, the benchmark S&P/ASX200 index was up 48.6 cents, or 1.07 per cent, at 4570.8 while the broader All Ordinaries rose 46.4 cents, or 1.02 per cent, to 4573.5.

On the Sydney Futures Exchange, the September share price index contract gained 41 points to 4567, on a volume of 12,153 contracts.

Bell Potter Securities senior client adviser Stuart Smith said overall exuberance and data showing a steady unemployment rate, pushed the market higher but that a correction was now overdue.

"I think we're overdue for a correction and I'm not alone. Valuations are stretched," he said.

The nation's unemployment rate was steady at a seasonally adjusted 5.8 per cent in August, from July, the Australian Bureau of Statistics said on Thursday.

Mr Smith said the employment figures were just about "spot on".

Retail stocks surged after the unemployment data, with Harvey Norman and David Jones jumping almost four per cent ahead of Friday's annual results presentation by Myer Ltd.

Myer is tipped to unveil plans of a $3 billion float for the company, which is majority owned by private equity players Texas Pacific Group.

Harvey Norman finished 15 cents higher at $4.06 and David Jones gained 20 cents to $5.20.

Mr Smith said profit-takers moved on local gold stocks after the precious metal price rose above US$1000 an ounce on Tuesday.

"Since the 1960s, every decade gold has been promised to go to US$3000 (per fine ounce) and it never does," he said.

Lihir Gold fell 10 cents to $2.99, Newcrest Mining lost 70 cents to $33.56 and dual-listed Newmont eased eight cents to $5.30.

By 1619 AEST the spot price of gold in Sydney was US$995.40 per fine ounce, down US$5.80 on Wednesday's closing price of $U1001.30.

By 1622 AEST banks were generally higher, with Commonwealth Bank closing 63 cents stronger at $47.28.

National Australia Bank gained 17 cents to $28.82, ANZ Banking Group firmed 11 cents to $22.31 and Westpac advanced 12 cents to $24.39.

Regional bank and insurance corporation Suncorp Metway fell 18 cents, or 2.21 per cent, to $7.97.

Maquarie Group finished 21 cents higher at $49.93 after it reiterated its first-half profit forecast given at its annual general meeting in July. This was equivalent to a 28 per cent decline from a year earlier to $435.5 million.

Australia's largest investment bank said the operational performance of most of its major businesses improved in the first quarter of this financial year from the preceding three-month period.

Resources giant BHP Billiton rose 31 cents to $38.00 and Rio Tinto put on 67 cents to $58.85.

Oil stocks were stronger, with Santos jumping 52 cents to $15.65, Woodside Petroleum adding $1.10 to $48.40 and Oil Search up two cents to $6.37.


By 1628 AEST media stocks were higher across the board, with Fairfax Media leading the sector.

Fairfax jumped 5.5 cents to $1.66, rival News Corp firmed 21 cents to $15.25 and its non-voting scrip gained 26 cents to $13.10.

Airline stocks flew higher, with national carrier Qantas jumping 11 cents to $2.65 and Virgin Blue Holdings surged three cents to 38.5 cents.

Last week Virgin announced it had raised $98.3 million in a non-renounceable rights issue. The 1.16 billion new shares commenced trading on the local bourse on Wednesday.

Boart Longyear was the top traded stock by volume, with 158.88 million shares changing hands for $44.11 million.

Boart's stock firmed 0.5 cents, or 1.82 per cent, to 28 cents.

Preliminary national turnover reached 3.27 billion shares worth $5.86 billion, with 707 stocks up, 410 down and 340 steady.

- AAP