Australian stocks: Market up despite swine flu concern

SYDNEY - The Australian share market closed moderately higher on Monday with some gains in the resources sector, as news of the swine flu outbreak affected sentiment on world markets.

At the 1615 AEST close, the benchmark S&P/ASX200 index had risen 19.3 points, or 0.52 per cent, to 3731.6, while the broader All Ordinaries was up 21.8 points, or 0.59 per cent, at 3690.

On the Sydney Futures Exchange, the June share price index futures contract was down two points at 3730, on a volume of 29,061, according to preliminary calculations.

"The market has ranged about 80-something points today and I think our Australian market has been looking at the Japanese market all day, which has been in out and out of positive territory," ABN Amro Morgans private client adviser Bill Bishop said.

"The Dow Futures has also been in negative territory most of the day, I imagine because of the swine flu."

Mr Bishop said the local market, and in particular airline companies, had been affected by the news of the flu outbreak.

Qantas closed down eight cents, or 4.04 per cent, at $1.90 and Virgin Blue dropped 1.5 cents, or 5.36 per cent, to 26.5 cents.

In the resources sector, global miner BHP Billiton added 36 cents to $32.41 and rival Rio Tinto improved five cents to $59.93.

Among the major banks, National Australia Bank fell 21 cents to $22.04, Commonwealth Bank decreased 21 cents to $35.75, Westpac weakened 22 cents to $20.00 and ANZ was six cents poorer at $16.85.

In the US on Friday, the Dow Jones Industrial Average gained 119.23 points, or 1.5 per cent, to close at 8,076.29.

The Nasdaq composite jumped 42.08 points, or 2.55 per cent, to 1,694.29 and the broad-market Standard & Poor's 500 index added 14.31 points, or 1.68 per cent, to 866.23.

Making news this Monday, shares in anti-infective drug developer Biota Holdings Ltd closed 71 cents, or 81.61 per cent higher, at $1.58 after the breakout in swine flu in Mexico and elsewhere.

Trans-Tasman brewer Lion Nathan Ltd shares jumped $3.26, or 39.23 per cent, to $11.57 after the company recommended an offer from its 46 per cent shareholder Japanese beer-maker Kirin Holdings Co to buy the remaining shares in the brewer that it does not already own.

Former Allco Finance chief David Clarke on Monday stepped down from financial services giant AMP Ltd. AMP shares closed four cents higher at $5.29.

Agribusiness Select Harvests Ltd hopes to secure Timbercorp Ltd's almond assets after the latter's administrators suspended all the troubled company's horticultural operations.

Select Harvests shares closed down 59 cents, or 16.86 per cent, at $2.91 while Timbercorp's suspended shares last traded at 4.4 cents.

Australia's White Energy Company says it has built in Indonesia what it says is the world's largest clean coal plant. Its shares closed up two cents at $1.52.

Among the energy sector, Woodside shares were 25 cents lower at $37.55, Oil Search fell six cents to $4.88 and Santos added 28 cents to $16.63.

The spot price of gold was US$914.20 an ounce by 1435 AEST, up US$2.50 on Friday's local close of US$911.70 an ounce.

The gold miners were higher. Newcrest rose $1.08 at $31.58, Lihir added four cents to $3.03 and Newmont gained 13 cents to $5.66.

Among retailers, Woolworths was up 37 cents at $26.71 and Coles owner Wesfarmers added 30 cents to $21.50.

Upmarket department store David Jones was up five cents at $3.00 and JB Hi-Fi increased 44 cents at $12.84.

Telstra lost two cents to $3.23 but rival Singapore Telecommunications was one cent higher at $2.31.

Macmahon Holdings Ltd was the top traded stock by volume, with over 59.24 million shares changing hands for $18.95 million. Its share price fell 22 cents, or 40.74 per cent, to 32 cents.

The company came out of a trading halt to forecast that second half profits would collapse as mining contracts were cancelled and because rain hampered operations.

Preliminary national turnover reached 1.58 billion shares traded for a value of $2.96 billion, with 482 stocks up, 501 down, and 255 unchanged.

- AAP