Aussie stocks: Market closes positive

PERTH - The Australian share market closed in positive territory on light trading volumes, driven by gains in the materials sector on the back of stronger commodity prices.

The benchmark S&P/ASX200 index was up 30.8 points, or 0.82 per cent, at 3,794.1 points, while the broader All Ordinaries index had gained 29.2 points, or 0.78 per cent, to 3,790.6 points.

On the Sydney Futures Exchange at 1621 AEST, the September share price index contract was up 18 points at 3,753 points on a volume of 17,001 contracts.

CMC Markets analyst David Taylor said most sectors were mixed excluding materials, after copper and oil prices rallied overnight.

"We did get a good (US) lead overnight ... with GM coming out of bankruptcy protection," Mr Taylor said.

He said trading volumes were light due to investor cautiousness.

"Volumes today are really, really ordinary.

"So investors are largely sitting on the sidelines.

"But the tone isn't bearish, it's just cautious."

BHP Billiton was up 36 cents at $32.65, while fellow mining giant Rio Tinto had put on 76 cents to $48.36.

The detention of four Rio Tinto executives in China on alleged suspicion of spying continued to dominate headlines on Friday.

Aluminium Corporation of China, or Chinalco, said the controversy was unrelated to its failed bid to invest US$19.5 billion (A$24.97 billion) in Rio Tinto.

Also, packager Amcor says it is continuing discussions with Rio Tinto about the partial acquisition of its Alcan packaging business, and considering all funding options.

Shares in Amcor were nine cents weaker at $5.08.

The big four banks were mixed. Commonwealth Bank put on 35 cents to $37.45, Westpac inched one cent lower to $19.15, ANZ appreciated 18 cents to $16.03 and National Australia Bank (NAB) gained 31 cents to $22.38.

Analysts said a probe of NAB's $18 billion portfolio of toxic debt instruments by the prudential regulator could prompt a capital raising as the bank faces a shareholder class action over previous writedowns.

In other headlines, speculation is mounting that Seven Network chairman Kerry Stokes plans to wrest control of Consolidated Media Holdings (ConsMedia) from fellow media mogul James Packer. Both tycoons have lifted their stakes in ConsMedia this week.

At 1515 AEST, a cross trade of 3.44 million ConsMedia shares worth $8.94 million went through at $2.60 per share.

The market was informed on Friday morning that Mr Packer had acquired two parcels of ConsMedia shares at $2.60 on Wednesday and Thursday.

ConsMedia shares closed one cent lower at $2.60 on Friday.

Among other major media companies, News Corp inched one cent lower to $12.59, its non-voting scrip was steady at $10.70, and Fairfax added half a cent to $1.15.

Among gold stocks, Lihir inched two cents higher to $2.88, Newmont dropped three cents to $4.90 and Newcrest found 56 cents at $30.16.

At 1624 AEST, the spot price of gold in Sydney was US$913.80 per fine ounce, up 80 US cents on Thursday's local close of US$913.00 per ounce.

The energy sector was mixed. Woodside was down 21 cents at $39.90, Oil Search was five cents weaker at $5.19 and Santos rose 10 cents to $13.30.

Among retail stocks, Coles owner Wesfarmers was up 39 cents at $22.40, while rival Woolworths gained nine cents to $26.44.

The top-traded stock by volume was oil and gas explorer Lakes Oil NL, with 192.9 million shares worth $2.99 million changing hands.

Its shares were down 6.25 per cent, or 0.1 cents, at 1.5 cents.

Preliminary market turnover was 1.51 billion shares worth $2.73 billion, with 538 stocks up, 345 down and 300 unchanged.

- AAP