Australian stocks: Market closes higher after breaking 5,000 milestone

The Australian stock market raced to fresh highs today, with the index of the nation's top 200 listed companies closing just over the 5,000 point milestone.

The S&P/ASX 200 closed 28.7 points higher to 5,000.4, after breaching the 5,000 point mark for the first time ever during morning trading.

The index's previous closing high of 4977.9 was set last Thursday.

The all ordinaries rose 28.9 points to 4961.6, also beating its previous closing high of 4936.7 but failing to reach the 5,000 level.

On the Sydney Futures Exchange, the June share price index contract was up 37 points to 5024.

Bell Potter senior adviser Stuart Smith said the market was relying on market leader BHP Billiton to rise over $25.00 to get it past the 5,000.

"It didn't take a lot of volume to get BHP Billiton through A$25 mark and the index through 5,000."

"There was a balancing act going on between resources stocks, which are being boosted by commodities prices, and a subdued performance from the banks."

BHP Billiton rose 54 cents to A$25.24.

Elsewhere in the resources sector, Rio Tinto was up A$1.60 to A$72.85.

But oil producer Woodside dropped 11 cents to A$42.33.

The big banks were broadly higher. Westpac found 20 cents to A$24.05, ANZ grew 24 cents to A$26.06 and Commonwealth Bank rose 14 cents to A$44.49.

NAB slipped 26 cents to A$35.76.

Meanwhile, retailer Coles Myer added nine cents to A$10.45, after delivering a better-than-expected A$484.5 million first half net profit.

Supermarket rival Woolworths lost five cents to A$19.15.

In the media sector, Ten Network firmed five cents to A$3.14 and Seven gained nine cents to A$9.46.

PBL advanced five cents to A$17.61, while News Corp stock rose 19 cents to A$24.23 and its non voting paper put on 28 cents to A$22.92.

Bucking the trend was Fairfax, which shed two cents to A$3.97.

In other news, James Hardie shares sank three percent, or 29 cents lower to A$9.40, after the buildings products company revealed that it was facing a bill for more than A$222.50 million in unpaid taxes.

Utility AGL has rejected a A$8.8 billion takeover offer from smaller rival Alinta, labelling the proposal inadequate.

AGL shares firmed 21 cents to A$18.80. Alinta shares rose six cents to A$10.95.

Elsewhere, national carrier Qantas edged down two cents to A$3.74 while competitor Virgin Blue moved ahead two cents to A$1.88.

Telco Telstra scraped off one cent to A$3.70. Optus owner Singapore Telecommunications lifted three percent or seven cents to A$2.36.

At 1705 AEDT the spot price of gold was $US555.60, up $US1.75 on Friday's close.

Gold miner Newcrest Mining lifted five cents to A$20.69 and Newmont rose 14 cents to A$6.85.

Lihir was steady at A$2.30.

The top traded stock by volume was minerals explorer Sherlock Bay Nickel, with 65.08 million shares worth A$4.43 million changing hands.

The stock rose 1.4 cents to 7.3 cents.

Preliminary market turnover reached 1.18 billion shares worth a total of A$3.61 billion with 586 stocks up, 486 down and 323 unchanged.

- AAP