Banking, resources push Aussie stocks higher

MELBOURNE - Strengthening banking and resources stocks helped push the Australian share market up nearly one per cent.

The benchmark S&P/ASX200 index closed up 45.9 points, or 0.97 per cent, at 4785.7 points, while the broader All Ordinaries index gained 44.3 points, or 0.93 per cent, to 4789.8 points.

On the Sydney Futures Exchange at 1615 AEDT, the December share price index contract was 35 points higher at 4,793 on 16,840 contracts.

Shaw Stockbroking senior dealer Jamie Spiteri said the market had continued its recent momentum.

"What we saw last week when we saw foreign funds coming towards Australia supporting our banking sector and major resources is a contributor here again today," Mr Spiteri said.

The big four banks all posted healthy rises, with Commonwealth Bank up $1.01 at $53.65, National Australia Bank rising 47 cents to $31.48, ANZ up 43 cents at $24.64 and Westpac up 47 cents at $26.31.

"There have also been some broker upgrades to the banks in recent days," Mr Spiteri said.

Macquarie Group bucked the trend and fell 66 cents to $55.32.

A National Australia Bank survey released Tuesday found business confidence fell slightly in September following a surge during the past half year.

Among the major miners, BHP Billiton was up 35 cents, or 0.92 per cent, at $38.24 and rival Rio Tinto gained 89 cents, to $62.19 on the back of stronger commodity prices.

Gold miners were mixed even as the price of the precious metal hovered around record highs.

Lihir Gold put on six cents, to $3.20, and Newcrest rose 92 cents to $36.26 but Newmont lost three cents to finish at $5.17.

The spot price of gold at 1621 AEDT was US$1054.8 per fine ounce, up US$4.88 on Monday's close of US$1049.92.

Energy stocks were also mixed, with Woodside Petroleum up 35 cents at $51.65 but rival Oil Search down one cent at $6.69.

Santos lost five cents to $15.05 while Origin Energy declined one cent, to $16.12.

Fairfax Media rose three cents to $1.73 after the company's board unanimously chose Roger Corbett as its new chairman.

"It is considered mildly positive," Mr Spiteri said.

"He (Mr Corbett) comes with strong leadership and obviously it is a group with warring factions at the board level," he said.

Consolidated Media rose two cents to $3.08, News Corp rose seven cents to $15.64 but its non-voting scrip slipped 11 cents to $13.44.

In other news, shares in toll road operator Transurban Group rose eight cents to $4.28 after it reached in-principle agreement with the NSW government for a $550 million upgrade of its Hills M2 motorway.

Transport and logistics company Toll Holdings Ltd announced a deal to take over Japanese freight operator Footwork Express, and its stock rose two cents to $8.59.

Junior minerals explorer Signature Metals Ltd had a good day, after revealing it had located a high-grade gold mineralisation at a project in West Africa.

Shares in Signature jumped 1.1 cents, or 39.29 per cent, to 3.9 cents.

The major retailers closed mixed, with Coles owner Wesfarmers falling 32 cents to $26.45, and rival Woolworths falling 16 cents to $28.85.

But up-market retailer David Jones put on 16 cents to $5.68 while Harvey Norman rose 15 cents to $4.54.

At 1634 AEDT the top-traded stock by volume was explorer Focus Minerals, with with 134.89 million shares worth $6.85 million changing hands.

Its shares were up 0.8 cents, or 17.39 per cent, at 5.4 cents.

Preliminary national turnover was 2.76 billion shares worth $4.66 billion, with 669 stocks up, 471 down and 321 unchanged.

- AAP