Aussie stocks still rising

MELBOURNE - The Australian share market has posted its 10th straight trading day of gains, closing more than one per cent higher on the back of rises overseas.

The benchmark S&P/ASX200 index closed up 49.8 points, or 1.22 per cent, at 4139.6 points, led by banks and mining stocks.

The broader All Ordinaries index gained 50.5 points, or 1.23 per cent, to 4147.8 points.

On the Sydney Futures Exchange at 1615 AEST, the September share price index contract was 49 points higher at 4114 on a volume of 18,572 contracts. "We are nearing nine-month highs after a good lead from Wall Street, with blue-chip stocks moving higher on Friday," said CommSec Market analyst Juliette Saly.

"There has generally been a lot of positive movement, and it is great to see (rises) 10 days in a row," Ms Saly said.

She said all sectors with the exception of property trusts had risen on Monday.

Standouts included mining giant Rio Tinto, which put on $2.19, or 3.81 per cent, to $59.74.

"Rio Tinto is back in favour," Ms Saly said.

"We have seen a bit of weakness coming through in the past month or so and Rio Tinto is looking good," she said.

BHP Billiton also rose, putting on 34 cents at $37.85.

The gold miners were trading mixed, with Lihir Gold down one cent at $2.79, Newcrest Mining up seven cents to $30.75 and Newmont steady at $5.09.

At 1615 AEST the local price of gold was US$954.70 per fine ounce, up US$5.60 on Friday's close of $949.10.

After recent gains Australian shares are now trading at their highest level since November 6, when the S&P/ASX 200 closed at 4149.7.

Banks had a good day too, with the big four posting rises.

Commonwealth Bank rose 42 cents to $40.17, National Australia Bank increased 16 cents to $22.43, Westpac was up 13 cents at $20.22 and ANZ also rose 13 cents, to $17.08.

Shares in Macquarie Group jumped $1.95, or 4.88 per cent, to $41.95 after the company received a broker upgrade.

"All the sectors are in the black except property trusts, and they are only down slightly," Ms Saly said.

Most major energy shares posted gains too, with Woodside Petroleum up one cent at $44.50, Oil Search increasing four cents to $5.63 and Santos rising 11 cents to $14.70.

Origin Energy fell 14 cents to $14.70.

Media shares traded mixed, with News Corp steady at $14.22 and its non-voting scrip up 14 cents at $12.18.

Fairfax Media rose 0.5 cents to $1.40 while Consolidated Media dropped five cents to $2.71.

Virgin Blue on Monday said it was seeking $231.4 million of new capital through an equity raising.

Shares in the company finished steady at 29 cents.

In other news Australand Property Group downgraded its full year guidance after property writedowns led to a first half loss of almost $269 million.

Australand shares were steady at 50 cents.

Retailers traded mixed, too. Woolworths was up nine cents at $26.20 and Coles owner Wesfarmers 82 cents was stronger at $26.04, while Harvey Norman was down two cents to $3.27 and David Jones was off six cents at $4.99.

At 1651 AEST the top-traded stock by volume was Sundance Resources, with 74.61 million shares worth $13 million changing hands.

Its shares were up three cents, or 19.35 per cent, at 18.5 cents.

Preliminary national turnover was 2.06 billion shares worth $4.43 billion, with 607 stocks up, 435 down and 334 unchanged.

- AAP