Australian stocks: Market ends day 15 points higher

SYDNEY- The Australian share market has posted its third successive daily rise to a fresh seven-month high, with financial stocks driving gains despite profit-taking in the resources sector.

At 1615 AEST, the benchmark S&P/ASX200 index was up 15 points, or 0.37 per cent, to 4062.2, while the broader All Ordinaries index had added 14.8 points, or 0.37 per cent, to 4061.5.

It was the strongest close for both indices since November 10 last year.

On the Sydney Futures Exchange, the June share price index futures contract was one point lower at 4055 on a volume of 29,576 contracts.

Over the past week the S&P/ASX200 index has gained 91 points, or 2.29 per cent, while the All Ordinaries rose 92.5 points, or 2.33 per cent.

IG Markets research analyst Ben Potter said trade was lighter on Friday as investors took profits from the week's gains.

"We're finishing the week on a good note," he said.

"The market has rallied very hard over the last four days, with 90 per cent of the gains coming from the materials and energy sectors."

Resources stocks were more subdued on Friday, with BHP Billiton losing 23 cents, or 0.6 per cent, to $38.04 and Rio Tinto gained 15 cents, or 0.19 per cent, to $77.20.

Fortescue Metals shares ended their run of massive gains, losing 20 cents, or 4.6 per cent, to $4.15.

"Some expected the better than forecast Chinese industrial production and retail sales figures to trigger some late-afternoon buying, but traders preferred to take some profits off the table," Mr Potter said.

The major banks were all stronger.

Commonwealth Bank added 36 cents to $37.80 as it raised the interest rate on its home and business loans by 10 basis points to offset higher funding costs

Westpac rose 18 cents to $19.92, ANZ lifted 42 cents to $17.30 and National Australia Bank was steady at $22.02.

On Wall Street overnight the Dow Jones industrial average added 31.9 points, or 0.37 per cent, to 8770.92 following improved jobs and retail data.

Energy stocks were mixed despite oil prices hitting an eight-month high at US$72.68 a barrel on the New York Mercantile Exchange for July delivery.

Woodside Petroleum gained three cents to $42.88, Oil Search dropped 13 cents to $5.97 and Santos lost 45 cents to $14.99.

In the gold sector, Lihir fell three cents to $2.96, Newmont lost 13 cents to $5.37 and Newcrest was flat at $32.

The price of gold at 1625 AEST was US$953.30 per fine ounce, down US$2.15 on Thursday's close of US$955.45.

Making news, Australian Agricultural Co shareholders have voted out the beef producer's chairman and several other directors, signalling a change of direction for the company.

AACo shares lost 4.5 cents to $1.505.

Minerals has reported a mill outage at its Golden Grove zinc, copper and lead mine in Western Australia a day after shareholders approved the sale of the asset to a China's Minmetals.

OZ Minerals gained 15.5 cents at to $1.045.

Elsewhere, Poseidon Nickel has agreed to sell its Western Australian gold rights to Triton Gold.

Poseidon shares added 15.5 cents, or 17.42 per cent, to $1.045.

Retailers were mixed, with Woolworths up 18 cents to $26.29, Coles owner Wesfarmers lost 37 cents to $22.35 and Harvey Norman dropped two cents to $3.09.

Telstra gained three cents to $3.33 and Optus parent Singapore Telecommunications fell one cent to $2.51.

The top-traded stock by volume was Boart Longyear, with 127.4 million shares worth $34.66 million changing hands.

Boart shares gained 4.5 cents, or 19.15 per cent, to 28 cents.

The mining services company said earlier in the week it was unaware of any information that would explain its rising share price.

Preliminary national turnover was 2.74 billion shares worth $5.36 billion, with 615 stocks up, 496 down and 352 unchanged.

- AAP