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PERTH - The Australian share market closed modestly stronger thanks to gains in the financial, energy and industrial sectors.
The benchmark S&P/ASX200 index was up 18 points, or 0.54 per cent, at 3,345.5, while the broader All Ordinaries index rose 15.9 points, or 0.48 per cent, to 3,297.4.
On the Sydney Futures Exchange at 1616 AEDT, the March share price index futures contract was down six points to 3,315 on a volume of 21,932 contracts.
CommSec market analyst Juliette Saly said the local bourse had a choppy start after a negative lead from Wall Street but picked up around midday AEDT.
"ANZ has forecast its dividends could be slashed this year by up to 25 per cent," Ms Saly said.
"That is, of course, going to set a nasty precedent for other banks to possibly follow suit."
ANZ was up 55 cents, or 4.4 per cent, at $13.05 after saying its unaudited net profit fell 11 per cent in the first four months of its fiscal 2009 to the end of January.
The bank also said cash earnings for the period, excluding provisions and credit intermediation trades, were up 18 per cent on the corresponding period.
National Australia Bank added 18 cents to $17.51, Commonwealth Bank found 67 cents to $29.80 and Westpac rose 47 cents to $16.65.
The big diversified miners were mixed. BHP Billiton was 41 cents weaker at $28.60, while Rio Tinto was up 12 cents at $46.30.
Shares in Fortescue Metals Group fell 27 cents, or 9.54 per cent, to $2.56 after coming out of a three-day trading halt.
The iron ore miner announced after market close on Wednesday that it had scrapped a plan to raise about $500 million from institutional investors.
Freight distributor Toll Holdings reported a first half net profit of $158 million, down 33 per cent on the previous corresponding period.
Shares in Toll were up 62 cents, or 13.28 per cent, at $5.29.
Energy stocks strengthened after the crude oil price rose 6.5 per cent overnight.
Woodside was up $1.81, or 5.3 per cent, to $35.98, Santos put on 53 cents, or 3.66 per cent, to $15.01 and Oil Search appreciated 27 cents, or 5.73 per cent, to $4.98.
Making headlines on Thursday, Telstra has announced the departure of chief executive Sol Trujillo after reporting a one per cent dip in first half profit.
Shares in Telstra fell nine cents to $3.68.
"The market is looking for a bit more guidance from Telstra as to who will be the replacement for Sol Trujillo," Ms Saly said.
"The profit result ... was pretty much in line or even better than some analyst expectations."
Shares in Optus network owner Singapore Telecommunications gained three cents to $2.60.
Australia's largest property developer Lend Lease said it would cut 1,700 jobs over the next six months and posted a loss of almost $600 million for the first half after slashing asset values.
Shares in Lend Lease were up 16 cents, or 3.27 per cent, at $5.06.
Mining services firm Boart Longyear has posted a rise in annual profit but reduced its capital spending, suspended dividends and cut its global workforce by 20 per cent amid the mining sector downturn.
Shares in Boart Longyear were half a cent higher at 13.5 cents.
Ms Saly said Macquarie Group shares were heavily sold off after saying it has no current plan for a capital raising.
Shares in Macquarie Group were down 99 cents, or 5.36 per cent, at $17.49.
At 1622 AEDT, the spot price of gold in Sydney was US$947.40 per fine ounce, down US$14.95 on Wednesday's local close of US$962.35.
Among major gold miners, Newcrest retreated $1.29 to $30.00, Newmont fell five cents to $6.20 and Lihir shed eight cents to $3.27.
Among retail stocks, Woolworths dipped eight cents to $28.00 while rival and Coles owner Wesfarmers shed 64 cents to $16.82.
Wesfarmers announced overnight that it would raise $1.7 billion through the retail component of its January capital raising.
The most traded stock by volume was property firm Goodman Group with 81.6 million shares worth $21.9 million changing hands.
Its shares inched half a cent lower to 24 cents.
Preliminary market turnover was 1.25 billion shares worth $3.57 billion, with 422 stocks up, 446 down and 279 unchanged.
- AAP
