Australian stocks: Market climbs nearly 3pc

MELBOURNE - The Australian share market finished about three cent higher on Monday and at its best level in seven weeks as resources stocks rose on the back of higher commodities prices and Wall Street gained.

At 1615 AEST, the benchmark S&P/ASX200 was up 113.4 points, or 3.01 per cent, at 3883, while the broader All Ordinaries increased 108.1 points, or 2.89 per cent, to 3846. It was the biggest one-day gain in the S&P/ASX200 since March 16 and the biggest for the all ords since March 17.

In the Sydney Futures Exchange, the June share price index contract was trading 126 points higher at 3,885 on volume of 28,837 contracts.

Bell Potter Securities Brisbane manager Greg McPherson said it had been a strong trading day across the board despite public holidays in Japan and China.

"We've been led up by the bigger miners on the back of stronger commodity prices," he said.

BHP Billiton added 83 cents, or 2.48 per cent, to $33.82, while rival Rio Tinto surged $3.12, or 4.86 per cent, to $67.30.

Oil stocks also had a healthy day after the price of oil lifted by US$2.00 over the weekend, Mr McPherson said.

Woodside Petroleum added $2.07, or 5.39 per cent, to $40.49. Santos increased 80 cents, or 4.91 per cent, to $17.09 and Oil Search put on 17 cents, or 3.31 per cent, to $5.30.

"It's a strong day all round. The stocks that are perceived to be your defensive type issues - Telstra, Woolies - we've seen some rotation out of those into more cyclical issues," Mr McPherson said.

In the financial sector, Macquarie Group recovered ground throughout the session after losing 8.5 per cent in early dealing when the stock resumed trading, after raising $540 million in new equity from an institutional placement and announcing a near 50 per cent fall in annual net profit last Friday.

Macquarie finished 54 cents, or 1.61 per cent, firmer at $34.02.

Australia's banks sector advanced across the board, with National Australia Bank up 94 cents, or 4.53 per cent, to $21.70, Commonwealth Bank up $1.55, or 4.42 per cent, to $36.60, ANZ Banking Group putting on 62 cents, or 3.88 per cent, to $16.62 and Westpac climbing 55 cents, or 2.9 per cent, to $19.50.

Retailers were mixed with Woolworths losing six cents to $26.36, and Wesfarmers - owners of Coles - surging $1.06, or 4.67 per cent, to $23.76.

Harvey Norman added 22 cents to $3.18 and David Jones rose 30 cents to $3.31.

Telstra fell four cents to $3.32 while Optus owner Singapore Telecommunications finished 10 cents, or 4.1 per cent, softer at $2.34.

SingTel on Monday won $500 million five-year contract to provide communication services to ANZ.

Media stocks were mostly stronger, with the exception of Seven Network which fell 10 cents, or 1.59 per cent, to $6.19.

Nine-owner Consolidated Media added four cents, or 1.88 per cent, to $2.17, Ten Network rose three cents to 98 cents and Fairfax Media finished steady at $1.15.

News Corporation jumped 36 cents, or 2.86 per cent, to $12.95 while its non-voting scrip surged 37 cents, or 3.29 per cent, to $11.63.

A buoyant airline sector saw national carrier Qantas gain eight cents, or 3.9 per cent, to $2.13, while rival Virgin Blue added two cents, or 7.02 per cent, to 30.5 cents.

Lion Nathan lost two cents to $11.72 after saying an implementation agreement enabling Japan's Kirin Holdings Co to acquire the rest of the brewer's shares is expected to be finalised in the next week.

Gold stocks were mixed despite an increase in the spot price of gold.

The spot price of gold in Sydney was at US$893.70 per fine ounce at 1640 AEST, up US$8.20 from Friday's local closed of US$885.50.

Dual-listed Newmont Mining lost 15 cents, or 2.73 per cent, to $5.35, while Lihir Gold firmed one cent, or 0.34 per cent, to $2.95 and Newcrest Mining added 45 cents, or 1.5 per cent, to $30.50.

Renison Consolidated was the top traded stock by volume at 1649 AEST, with over 136.6 million shares changing hands for $517,012, after the stock rose 0.2 cents to 0.5 cents.

Preliminary national turnover was 1.9 billion shares, traded for a value of $3.45 billion, with 667 stocks up, 332 down and 306 unchanged.

- AAP