Aust stocks still flying

MELBOURNE - Australian sharemarket posted its eighth consecutive close above 4,000 points on Tuesday, spurred on by financial stocks and the continuing run of stronger investor sentiment.

At 1615 AEST, the benchmark S&P/ASX200 index was up 29.9 points, or 0.72 per cent, at 4169.5 points, while the broader All Ordinaries index had put on 26.2 points, or 0.63 per cent, to 4174 points.

On the Sydney Futures Exchange, the September share price index contract was 26 points higher at 4,139 points on 21,179 contracts.

CMC Markets head of trading James Foulsham said trading volumes were higher on increased investor optimism that let the market consolidate above 4,000 points.

"We've seen a fair jump in trading volumes over the last couple of days," he said.

"People were a little bit edgy about there being a pull-back, but now they see it holding above 4,000 there is a little bit more confidence around.

"We had a very good commission day yesterday - one of the best we've had in two months - so that's quite a good indication that people are coming back into the market again."

More confidence from US investors and a surge in US home sales in June gave the local bourse a positive lead, with financials leading the market higher.

Mr Foulsham said Westpac, National Australia Bank (NAB), and Macquarie Group led the market, with defensive and healthcare stocks such as Telstra and Cochlear sliding.

NAB jumped 65 cents, or 2.9 per cent, to $23.08 - $1.58 above last Thursday's issue price for the institutional component of its $2.75 billion capital raising.

Westpac advanced 56 cents, or 2.77 per cent, to $20.78, ANZ Banking Group gained five cents to $17.13 and Commonwealth Bank lost 15 cents to $40.02.

Macquarie Group added 98 cents, or 2.34 per cent, to $42.93.

Australia's major miners were mixed, with BHP Billiton advancing 17 cents to $38.02 and rival Rio Tinto falling 34 cents to $59.40.

Oil stocks were also mixed with Oil Search gaining 17 cents to $5.80, Woodside firming three cents to $44.53 and Santos easing three cents to $14.67.

Major gold stocks were mixed as the local spot price of gold edged higher.

Lihir Gold firmed two cents to $2.81, while dual-listed Newmont Mining gave up six cents, or 1.18 per cent, to $5.03 and Newcrest Mining fell 32 cents to $30.43.

At 1630 AEST the spot price of gold in Sydney was US$954.45 per fine ounce, down US$2.95 on Monday's close of US$957.40.

In news on Tuesday, shares in Reward Minerals plunged eight cents, or 20.51 per cent, to 31 cents after the federal government refused to overrule a decision blocking their Lake Disappointment potash mine.

In contrast, shares in consumer products supplier GUD Holdings gained 35 cents to $7.35 after the company gave an optimistic outlook despite booking a lower annual net profit.

Alesco shares finished 10 cents higher at $4.25 despite booking a full year net loss of almost $13 million because of the slowdown in housing and construction.

By 1639 AEST major retail stocks were mostly higher, with grocer giant Woolworths adding 38 cents to $26.58 and department store owner David Jones firming five cents to $5.04.

Coles owner Wesfarmers gained 31 cents to $26.35. Managing director Richard Goyder telling reporters the house brands of its Coles subsidiary would continue to post double-digit sales growth for calendar 2009.

Major media stocks were mostly stronger, with Fairfax Media advancing four cents to $1.44 and News Corporation gaining 28 cents to $14.50.

News' non-voting scrip jumped 32 cents to $12.50.

Telstra Corp eased one cent to $3.57 and Singapore Telecommunications, owner of Optus, fell five cents to $2.84.

National carrier Qantas firmed five cents to $5.05 while its rival Virgin Blue Holdings remained in a trading halt at 29 cents, pending a $231 million equity raising.

Asciano Group was the top traded stock by volume, with over 123.5 million shares changing hands for $183.2 million and pushing the share price two cents higher to $1.475.

Preliminary national turnover reached 2.22 billion shares worth $5.17 billion, with 537 stocks up, 527 down and 322 steady.

- AAP