Australian stocks: Market up 22 points

SYDNEY- The Australian share market has closed at fresh calendar year high as resource stocks continued their strong gains.

At 1615 AEST, the benchmark S&P/ASX200 index was up 22.8 points, or 0.57 per cent, to 4047.2, while the broader All Ordinaries index was up 31 points, or 0.77 per cent, to 4047.3.

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 27 points higher at 4047 on a volume of 25,568 contracts.

Shaw Stockbroking senior dealer Jamie Spiteri said the resources sector was the driver the market's gains on Thursday.

"Strength was visible very much in areas that have gained a lot of attention in the past week, in particular post the BHP and Rio Tinto joint venture," he said.

"We've seen some of the other resource plays, in particular the iron ore plays, come in for continued attention.

"Obviously we've seen added strength in BHP and Rio, but we've also seen a spectacular move in Fortescue."

BHP Billiton shares gained 57 cents, or 1.51 per cent, to $38.27 and Rio Tinto added $4.02, or 5.5 per cent, to $77.05.

Fortescue Metals surged 76 cents higher, up 21.17 per cent, to $4.35.

The company said on Thursday it was unable to explain why its shares had almost doubled in price since early this month.

"Many would have thought that may have just stifled some of the share price rise, but the rise here today comes as attention towards what may play out post the BHP and Rio Tinto joint venture has Fortescue as the next major player," Mr Spiteri said.

The market's gains came despite a fall on Wall Street overnight, where the Dow Jones Industrial Average index fell 24.04, or 0.3 per cent, to 8,739.02 points.

The local market was also propelled higher in afternoon trade by the release jobs data that was notas bad as expected.

The jobless rate rose to 5.7 per cent in May, up from a revised 5.5 per cent in April.

However, total employment fell by 1,700 to 10.793 million in the month, seasonally adjusted, compared to market expectations for a decline of 30,000.

Elsewhere in resource stocks, energy stocks maintained recent gains after further rise in the price of oil.

Woodside Petroleum gained seven cents to $42.85, Oil Search added 21 cents to $6.10 and Santos dropped 18 cents to $15.44.

In the gold sector, Lihir fell six cents to $2.99, Newmont dropped five cents to $5.50, while Newcrest picked up 20 cents to $32.00.

The price of gold at 1627 AEST was US$956.80 per fine ounce, down US$1.40 on Wednesday's close of US$958.20.

The were falls also among the major banks, with National Australia Bank down 10 cents at $22.02, Commonwealth Bank shed 52 cents to $37.44, Westpac dropped five cents to $19.74 and ANZ added six cents to $16.88.

Retailers were mixed, with Woolworths down 37 cents to $26.11 and Coles owner Wesfarmers up 11 cents to $22.72.

Making news, OZ Minerals' shareholders have voted overwhelmingly in favour of the sale of most of the miner's assets to China Minmetals Non-Ferrous Metals Co (Minmetals) for US$1.386 billion (A$1.73 billion).

Oz Minerals shares are in a trading halt at 89 cents.

Telstra gained two cents to $3.30, while optus parent Singapore Telecommunications dropped one cent to $2.52.

The top-traded stock by volume was Pacrim Energy, with 89.94 million shares worth $1.29 million changing hands after it announced favourable results in preliminary drilling at a West Australian gold mine.

Pacrim shares gained 0.5 cents, or 62.5 per cent, to 1.3 cents.

Preliminary national turnover was 2.42 billion shares worth $5.2 billion, with 600 stocks up, 485 down and 332 unchanged.

- AAP