Australian stocks: Resources boost stock market higher

The Australian stock market closed marginally higher led by resources as gold moved higher towards a milestone price.

At the 1615 AEDT close the S&P/ASX200 was 16.5 points higher at 4665.3 while the all ordinaries gained 17.7 points to 4610.2.

On the Sydney Futures Exchange, the December share price index contract was up 29 points to 4681 on a volume of 9,164 contracts at 1619 AEDT.

Ord Minnett research director Russell Lander said many commodities were enjoying strong prices, underpinning the performance of the resources sector.

"The main interest has been in the resources," Mr Lander said.

"We have had a good run in the gold stocks today.

"Gold really does affect people's mood ... and people become very irrational, get excited and they rush into stocks."

At 1619 AEDT the spot price of gold on the local market was $US498.40, approaching the milestone $US500 an ounce mark, and up from Friday's close of $US495.25.

The local gold stocks responded with Newmont Mining putting on 26 cents to $6.52 as its president said the company was considering a rival bid for Canadian takeover target Placer Dome.

Newcrest Mining jumped 94 cents to $21.61, Kingsgate Consolidated added 12 cents to $4.17 while Lihir Gold piled on 19 cents to $2.32.

The big resource players were mixed with Rio Tinto down 12 cents to $62.09 while BHP Billiton put on 20 cents to $22.22.

Energy stocks were also a highlight on the market today as the oil price held steady over the weekend.

Woodside was the star performer putting on 70 cents to $35.30, Santos pushed 35 cents ahead to $11.75 while Oil Search found 10 cents to $3.48.

Oil refiner Caltex Australia added 14 cents to $21.34 after saying its 2005 financial results would surpass those of 2004.

In the banking sector the big four players all finished in positive territory with Westpac up eight cents to $22.18, National Australia Bank pushing seven cents higher to $32.72, Commonwealth Bank finding five cents to $42.00 and ANZ inching up one cent to $23.81.

Other financial stocks were mixed with Macquarie Bank taking off 17 cents to $68.03 and St George Bank shedding 73 cents to $28.96 after going ex-dividend.