Aussie market at highest close since December

MELBOURNE - Big miners helped drive Australia's stock market to its highest close since last November.

The benchmark S&P/ASX200 index closed up 25.7 points, or 0.63 per cent, at 4089.8 points, the highest close since November 10.

The broader All Ordinaries index gained 24.7 points, or 0.61 per cent, to 4097.3 points, its highest level since November 6.

On the Sydney Futures Exchange at 1615 AEST, the September share price index contract was 28 points higher at 4063 on 22,315 contracts.

Gains in Australia followed a 2.12 per cent jump in the US's Dow Jones Industrial Average, which finished above 9000 for the first time since early January.

IG Markets institutional dealer Chris Weston said after starting strongly the market weakened a bit during the day.

"We opened high, with a nice bit of clout, but since then we have tapered away with a negative bias," IG Markets institutional dealer Chris Weston said.

Mr Weston said gains to big miners had helped the market.

BHP Billiton rose 41 cents to $37.51 and rival Rio Tinto put on six cents to $57.55.

"We did see base metals largely up on the London Metals Exchange," Mr Weston said.

"We also saw a bit of speculation as well that BHP could be looking to do a share buy-back because they have still got a cash surplus," he said.

Other miners finished the day mixed, with OZ Minerals steady at $1.15 and Fortescue Metals Group down eight cents at $4.33.

The price of gold fell and at 1615 AEST was trading at US$949.25 per fine ounce, down US$3.65 on Thursday's close of US$952.90.

Newcrest Mining rose four cents to $30.68, but Newmont fell five cents to $5.09 and Lihir Gold dropped five cents to $2.80.

Mr Weston said banks opened the day higher but lost ground in later trading amid fears the US market may post falls in their coming session.

"There are just fears in the market that tonight's US session could face a few uphill battles," Mr Weston said.

"People are just saying they could see a poor session in the US overnight so they are taking a profit on certain stocks," he said.

The Commonwealth Bank ended the day 82 cents higher at $39.75, Westpac rose 48 cents to $20.09 and ANZ gained 18 cents to $16.95.

But National Australia Bank lost eight cents to $22.27 and Macquarie Group fell $1.80, or 4.31 per cent, to $40.00.

Macquarie Airports announced on Friday it will takeover its own management.

Shares in Macquarie Airports dropped 18 cents, or 6.82 per cent, to $2.46.

Energy stocks finished the day mixed, with Woodside Petroleum rising 79 cents to $44.49 and Origin Energy up 24 cents at $14.84.

Shares in Oil Search fell eight cents to $5.59 and Santos dropped six cents to $14.59.

On Friday, Woodside's quarterly report revealed lower oil prices have savaged the company's second quarter revenues, outweighing higher sales volumes.

Farm chemicals supplier Nufarm announced that Chinese chemical trader, Sinochem Corp, had made enquires about acquiring the business.

Shares in Nufarm finished the day up 13.01 per cent, or $1.28, at $11.12.

The media sector also ended mixed, with News Corp shares up 33 cents to $14.22 and the company's non-voting scrip up 14 cents to $12.04.

Rival Fairfax Media gained 1.5 cents to $1.395, and West Australian News put on 11 cents, to $5.73, but Consolidated Media lost one cent, to $2.76.

Retailers were mixed, with Woolworths finishing 44 cents weaker at $26.11 but Wesfarmers up 92 cents, to $25.22.

Up-market retailer David Jones gained six cents, to $5.05 while Harvey Norman rose two cents, to $3.29.

At 1650 the top-traded stock by volume was Boart Longyear, with 59.1 million shares worth about $14.9 million changing hands.

Boart Longyear's shares fell four per cent to 24 cents.

Preliminary turnover was 2.29 billion shares worth $5.58 billion, with 639 stocks up, 443 down and 304 unchanged.

- AAP