Australian stocks: Market closes slightly higher

SYDNEY - The Australian share market closed slightly higher as heavyweight resources stocks posted gains on a day of relatively light trade.

At 1615 AEST, the benchmark S&P/ASX200 was up 7.3 points, or 0.19 per cent, at 3824.6, while the broader All Ordinaries added 8.3 points, or 0.22 per cent, to 3808.9.

On the Sydney Futures Exchange, the June share price index contract was 15 points lower at 3,829 on a volume of 20,456 contracts.

Macquarie Private Wealth adviser Helen Spencer said the market managed to edge higher late in the day on the back of gains in the resources sector.

"After a fairly soft lead form the US it was fairly directionless today," Ms Spencer said.

"We spent most of the day on the back foot, just in negative territory, but into the close we're pushing a bit higher just to push us into the red, helped a lot by a stronger resource sector.

"Gold stocks also faired very well ... on a bit of interest in the sector helped by a higher gold price."

Rio Tinto gained $1.02, or 1.6 per cent, to $64.79 and BHP Billiton added 34 cents, or one per cent, to $34.20.

Lihir Gold rose nine cents to $3.03, Newcrest Mining was up $1.77 at $31.27 and Newmont Mining Group lifted six cents to $5.70.

The spot price of gold in Sydney was US$927.70 per fine ounce, up US$5.75 on Tuesday's local close of US$921.95.

Financial stocks ended mixed.

National Australia Bank gained one cent to $22.02, Commonwealth Bank rose five cents to $36.20, Westpac lost 37 cents to $19.69 and ANZ Banking Group dropped two cents to $15.55.

"There was light volumes as investors were still absorbing recent data that is still mixed, but confidence seems to be holding up relatively well," Ms Spencer said.

Making news on Wednesday, James Hardie Industries NV posted a 44 per cent drop in full year operating profit due to a severe housing downturn in the United States.

James Hardie shares added 11 cents, or 2.51 per cent, to $4.50.

Agribusiness ABB Grain cut its annual profit guidance after a writedown of stock values and fall in global fertiliser prices dragged down its first half result.

ABB shares rose 15 cents, or 1.74 per cent, to $8.75.

Rival AWB Ltd expects a better second half after its interim profit plunged over 60 per cent on dry weather, weak demand, and a poor performance in Brazil.

AWB shares dropped 12 cents, or 11.27 per cent, to 94.5 cents.

Brewer Lion Nathan said it was well placed to thrive after a robust beer market helped it deliver a strong first half net profit.

Lion Nathan shares gained one cent to $11.69.

Surfwear retailer Billabong International lost $1.69, or 16.67 per cent, to $8.45, after emerging from a trading halt following a a capital raising for as much as $290 million to help pay down debt.

Among other retailers, JB HiFi fell 31 cents to $12.53, while Harvey Norman dropped four cents to $3.06.

Oil stocks were mixed after further rises in crude oil futures.

Oil Search lost 12 cents to $5.18, Woodside Petroleum gained 43 cents to $44.81 and Santos ended four cents higher at $14.80.

Telstra closed up three cents at $3.21, while the parent of rival Optus, Singapore Telecommunications, dropped nine cents to $2.59.

The top traded stock by volume was air purifier AFT Corporation, with 104.9 million shares worth $104,900 changing hands.

Its shares were steady at 0.1 of a cent.

Preliminary national turnover was 1.76 billion shares, worth $3.73 billion, with 507 stocks up, 490 down and 322 unchanged.

- AAP