Australian stocks: Market closes higher

MELBOURNE - The Australian share market closed higher today after a strong lead from United States markets.

At the 1615 AEST close, the benchmark S&P/ASX200 had risen 85.2 points, or 2.31 per cent, to 3780.5, while the broader All Ordinaries had lifted 82.8 points, or 2.26 per cent, to 3744.7.

On the Sydney Futures Exchange, the June share price index futures contract was up 52 points at 3773 on volume of 30,434 contracts, according to preliminary calculations.

On Wall Street overnight, the Dow Jones Industrial Average index gained 168.78 points, or 2.11 per cent, to 8,185.73 as investors saw seeds of recovery in a report on the weak US economy and were encouraged by a Federal Reserve statement that the pace of economic contraction was easing.

IG Markets research analyst Ben Potter said the local bourse was higher on Thursday following strong global leads, buoyant Asian markets and a rally in US stock futures.

"The combination of end-of-month buying and the realisation that the rate of US contraction is slowing is definitely forcing shorts (short-sellers) to call it a day and cover back their positions, giving the rally even more impetus," Mr Potter said.

"Globally, equity markets are being boosted by the sharply better than expected consumer confidence and sentiment figures, especially those seen in the US overnight."

In the resources sector, global miner BHP Billiton jumped $1.00 to $33.27 after agreeing in-principle to sell its stake in its Suriname bauxite and alumina refining operations to aluminium rival Alcoa.

Rio Tinto added $3.08 to $64.43.

Bauxite miner and aluminium smelter Alumina was in a trading halt pending a rights issue aimed at raising at least $644 million. It last traded at $1.49.

Oil and gas producer Woodside Petroleum was 99 cents richer at $38.38 and Santos eased four cents to $16.42.

Origin Energy found 15 cents at $16.29, despite a fall in output in the third quarter following the sale of some of its coal seam gas assets.

Among the major banks, Commonwealth Bank was 60 cents higher at $35.11 as Bankwest, which Commonwealth Bank owns, reported a loss for calendar 2008.

National Australia Bank improved nine cents to $20.63, ANZ jumped 50 cents to $15.90 and Westpac ascended 35 cents to $19.20.

Elsewhere in the financial services sector, BT Investment Management was 40 cents higher at $2.00 despite its first half profit falling 34 per cent.

In the gold sector, Lihir nudged up one cent to $3.00 after it posted its third consecutive quarter of record gold output and maintained annual production guidance.

Newmont lost 16 cents to $5.60 and Newcrest sagged 51 cents to $29.94.

The price of gold in Sydney at 1624 AEST was US$897.10 per fine ounce, up US$2.70 on yesterday's close of US$894.40.

Telco Telstra firmed five cents to $3.33 and Optus-owner Singapore Telecommunications picked up three cents at $2.38.

Retailer Woolworths was seven cents heavier at $26.72 and Wesfarmers, which owns Coles, rose 81 cents to $22.64.

Among media stocks, Consolidated Media added two cents to $2.13 and Fairfax was up 7.5 cents to $1.185.

News Corp strengthened 65 cents to $12.75 and its non-voting stock surged 62 cents to $11.34.

Among other stocks, shopping centre owner Westfield Group found 13 cents at $10.73 after it reconfirmed its earnings guidance for 2009.

Drug distributor and pharmacy retailer Australian Pharmaceuticals Industries was one cent higher at 51 cents as it delivered a rise in first half profit but did not pay a dividend.

Information technology provider Macquarie Telecom Group advanced 15 cents to $1.90 as it shrugged off the economic slowdown and said it expects to report a lift in annual earnings.

The top-traded stock by volume was base metals and gold explorer Hawthorn Resources, with 105.5 million stocks worth $1.36 million changing hands. Hawthorn was 0.1 cents higher at 1.2 cents.

Preliminary national turnover was 2.08 billion shares worth $4.45 billion, with 672 stocks up, 340 down and 276 unchanged.

- AAP