Aussie market closes 28 points up

SYDNEY - The Australian share market closed higher on Friday, ending a run of four straight losing sessions amid thin volumes and lacklustre trading conditions.

At 1615 AEDT, the benchmark S&P/ASX200 index had risen 28.5 points, or 0.62 per cent, to 4,635.2 points, while the broader All Ordinaries index was up 28.5 points, or 0.62 per cent, at 4,651.4 points.

On the Sydney Futures Exchange, the December share price index futures contract was 26 points higher at 4,640 on a volume of 42,639 contracts.

The local market opened stronger on the back of a positive lead from Wall Street and held on to those gains throughout the trading day to post its first positive close for the week.

Burrell Stockbroking director Richard Herring said it was pleasing the market managed a slight recovery after a disappointing week, in quiet trading conditions.

"It's just general nice gains," Mr Herring said.

"But there's nothing particularly powerful that would make you sit back and think `wow, that's a really good move'."

The major miners finished higher, with BHP Billiton up 54 cents, or 1.35 per cent, at $40.50, while rival Rio Tinto closed 38 cents higher at $70.18.

Rio Tinto said on Friday it had responded to "increased complexities" in the Asian market by appointing a new chief negotiator for iron ore in the region.

On Wall Street overnight, the Dow Jones Industrial Average index gained or 0.67 per cent, or 68.78 points, to 10405.83 and the S&P500 index advanced 0.58 per cent, or 6.4 points, to 1102.35.

At 1624 AEDT the local spot price of gold was $1,135.90 per fine ounce, US$7.77 stronger than Thursday's closing price of US$1,128.13.

Gold miners ended mostly higher.

Lihir Gold ended up five cents, or 1.57 per cent, at $3.24 and Newcrest finished 17 cents higher at $35.02, but Centamin Egypt slipped three cents, or 1.44 per cent, to $2.05.

Transurban finished up three cents at $5.58 after Australia's Future Fund said after the market closed on Thursday that it had preliminary discussions with two Canadian pension funds to support their takeover bid for the toll road operator.

Mr Herring said the subdued reaction to the announcement reflected "general market apathy" at this time of the year and the fact that no firm offer has been made.

"You would think something like that would potentially move the share price, maybe substantially," Mr Herring said.

"But it's just a discussion at this stage, there's certainly been no offer put to the company."

In November, Transurban rejected a bid by the Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers Pension Plan (OTPP) to acquire the company for $5.25 per stapled security.

The local banks were mostly lower with the exception of NAB which closed up 21 cents, or 0.75 per cent, at $28.21 and Macquarie Group, which rose 99 cents, or 2.11 per cent,to $47.89.

Macquarie said on Friday it would will set aside $350 million in shares for bonus payments to senior staff, after changing its remuneration arrangements in October.

ANZ backpedalled 20 cents to $21.30, Westpac ended down 21 cents at $23.56 and Commonwealth Bank dipped one cent to $52.50.

Weaker crude oil prices during the offshore session had a mixed effect on local energy stocks.

Woodside Petroleum closed 10 cents higher at $47.18, while Oil Search lost 10 cents to $5.43.

Gas giant Santos rose 16 cents to $13.75 and Origin Energy closed nine cents lower at $15.80.

The price of crude oil fell for a seventh straight day and traded below US$70 a barrel for the first time since October during the overnight session.

Weapons maker Metal Storm was up 0.2 cents, or 9.09 per cent, at 2.4 cents.

The company said it would make a formal demand on Assure Fast Holdings after initial monies promised under a US$35 million (A$38.18 million) investment agreement were not received by a deadline on Thursday.

Packaging giant Amcor rose six cents to $6.16 after it flagged a shake-up to its business structure in preparation for the acquisition of the Alcan Packaging operations.

The top-traded stock by volume was Monitor Energy, with 205.77 million shares worth $1.03 million changing hands.

Its shares ended unchanged at 0.5 cents.

Preliminary market turnover was 2.24 billion shares worth $4 billion, with 587 stocks up, 463 down and 365 unchanged.

- AAP