Aussie stocks climb to 12-month high

SYDNEY- The Australian sharemarket rose to a new 12 month high on Wednesday spurred on by an upbeat report from miner Rio Tinto and economic data showing a rise in consumer confidence.

At the 1615 AEDT close, the benchmark S&P/ASX200 index was up 45.4 points, or 0.95 per cent, at 4831.1, while the broader All Ordinaries had added 44.2 points, or 0.92 per cent, to 4834.

It was the highest close for the S&P/ASX200 since September 26, 2008 and the highest for the All Ordinaries since September 29, 2008.

On the Sydney Futures Exchange, the December share price index contract was 44 points higher at 4837, on a volume of 22,922 contracts.

IG Markets analyst Ben Potter said investor confidence was boosted on Wednesday by positive trading updates from Rio Tinto, CSL and Ansell.

"In fact, Rio Tinto upped its full year iron ore output forecasts while Ansell said it was trading ahead of expectations," Mr Potter said.

Mr Potter said the Australian market was also supported by a 1.7 per cent jump in October consumer sentiment.

"The 1.7 per cent rise in consumer sentiment was confirmation the Australian consumer had well and truly factored in the start of the rate hiking cycle."

The Westpac-Melbourne Institute index of consumer sentiment rose 1.7 per cent to 121.4 points in October, from the September result of 119.3.

The big miners closed higher, with BHP Billiton up 16 cents at $38.40 and Rio Tinto up $1.06, or 1.7 per cent, at $63.25.

On Tuesday in the US, Wall Street closed slightly lower on mixed corporate earnings reports.

The Dow Jones Industrial Average dropped 14.74 points, or 0.15 per cent, to settle at 9,871.06.

Among the major banks, Commonwealth Bank gained $1.32, or 2.46 per cent, to $54.97, Westpac added 49 cents to $26.80, ANZ was up 16 cents at $24.80, and National Australia Bank was up 44 cents at $31.92.

The retailers were higher, too.

Wesfarmers gained 45 cents at $26.90, Woolworths was up 38 cents at $29.23, Harvey Norman gained 10 cents to $4.64 and David Jones was up four cents at $5.72.

Electronics retailer JB Hi-Fi said it was encouraged by signs of consumer confidence and expected sales to jump this financial year.

JB Hi-Fi gained 92 cents, or 4.97 per cent, to $19.42.

The Reject Shop jumped 18 cents, or 1.44 per cent, to $12.68 after it reiterated its guidance for 14 per cent earnings growth in fiscal 2010 and said that its new store opening program had added to sales.

Also in the news, condoms and gloves maker Ansell said its first quarter was stronger than expected and that earnings per share for 2009/10 would come in at the top end of expectations.

Ansell gained 17 cents to $10.60.

Also making news, CSL said first quarter trading was in line with expectations, but warned foreign exchange rates may affect its annual profit.

CSL lifted 29 cents to $32.00.

In energy, Woodside Petroleum gained 98 cents, or 1.9 per cent, to $52.63, Santos added 31 cents, or 2.06 per cent, to $15.36, and Oil Search closed steady at $6.69.

In the gold sector, Lihir gained 13 cents to $3.33, Newcrest Mining added 84 cents to $37.10, and Newmont was up 11 cents at $5.28.

The spot price of gold closed in Sydney at US$1068.87 per fine ounce, up US$13.04 on Tuesday's closing price of US$1055.83.

Media stocks closed mostly higher.

Fairfax was up 0.5 cents at $1.735, News Corp was up 36 cents at $16.00, its non-voting scrip was up 25 cents at $13.69, while Consolidated Media was three cents lower at $3.05.

Seven Network was up 10 cents at $6.36.

The most traded stock by volume was Focus Minerals with 368.8 million shares worth $22.1 million changing hands.

Its shares were up 0.3 cents, or 5.56 per cent, at 5.7 cents.

Market turnover was 3.7 billion shares worth $5.1 billion, with 671 stocks up, 445 down and 345 steady.

- AAP