Oz shares catch ride on rail float

SYDNEY - The Australian stock market closed higher on a day when trade was dominated by the public float of Queensland freight railways, QR National.

The benchmark S&P/ASX200 index closed up 14.3 points, or 0.31 per cent, at 4643.5, while the broader All Ordinaries index rose 14.1 points, or 0.3 per cent, to 4731.8.

On the ASX 24, the December share price index futures contract was 11 points higher at 4660 points, with 24,041 contracts traded.

QR National was the highest traded share by volume and value, with 476.31 million shares changing hands for A$1.243 billion.

RBS Morgans client adviser Bill Bishop said it was a positive thing for the market to see a large float like QR get away well.

"The market is demonstrating the confidence it has in itself," he said.

"QR is the biggest float since Telstra and it is good to see big things like that having some success."

Shares in the rail and freight operator closed at A$2.65, after opening at A$2.54 a share.

"Despite all the naysayers, at the end of the day it [QR] is a triumph for everyone involved.

"They will be very happy with tonight's result I think."

Shares in the major banks were mixed, with Westpac gaining 10c to A$21.72, while Commonwealth ended down 8c at A$48.73.

National Australia Bank also ended the day in the red, down 7c to A$24.00, while ANZ lost 1c to A$22.48.

The major miners performed well, with BHP gaining 27c, or 0.62 per cent, to A$43.88 and Rio Tinto climbing 42c, or 0.5 per cent, to A$84.72.

Bishop said the market had responded positively to news of a massive international bailout for debt-ravaged Ireland.

- AAP