BHP drives shares to new high

The Australian sharemarket closed at a record high yesterday, boosted by a positive lead from US markets but more so by pleasing production figures from BHP Billiton and goldminer Newcrest Mining.

CMC Markets market analyst David Land said the resources sector accounted for most investor interest yesterday.

"The reporting of the output numbers from BHP and Newcrest were probably the areas that gained the most attention," Land said. Banks and insurers also had solid performances.

On the downside, oil and gas producer Oil Search's downgrade of full-year production forecasts had seen its share price fall.

Metal recycler Sims Group dipped A10c to A$28.50 despite raising its full-year earnings guidance.

- Agencies