Big gains for miners, NAB

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The Australian sharemarket finished on its highest close in over four months, as National Australia Bank and gold miners posted solid gains.

The benchmark S&P/ASX200 index ended the day 35 points up at 4661.5 points - its highest close since May 13 when it finished at 4652.8. The broader All Ordinaries index rose 33.6 points, or 0.72 per cent, to 4702.7 points.

On the Sydney Futures Exchange at 1616 AEST, the September share price index contract was 24 points higher at 4664, on a volume of 75,446 contracts.

EL&C Baillieu Stockbroking director Richard Morrow said yesterday's trading trends revealed a mixed mood among local investors.

"It suddenly took off in the mid-afternoon in reaction to global trends," Morrow said.

National Australia Bank shares rose after the bank abandoned its A$13.3 billion plus takeover plans for AXA Asia Pacific. NAB said it had terminated its agreement to acquire the Australian and New Zealand businesses.

Eyes are now on AMP, which was the other bidder.

NAB finished 72c stronger at A$25.94, AMP added 6c to A$5.14 and AXA Asia Pacific was flat at A$5.18.

Westpac rose 26c, or 1.11 per cent, to A$23.63, ANZ added 14c, or 0.58 per cent, to A$24.16 and Commonwealth Bank finished 20c stronger at A$53.80.

In other news, the Queensland Government said it would back a multibillion-dollar plan to transmit hydropower from PNG to the state's north. Queensland Premier Anna Bligh and the PNG Government were due to sign a memorandum of co-operation with project proponents Origin Energy and PNG Energy Developments.

Origin Energy shed 17c, or 1.09 per cent, to A$15.48. Woodside Petroleum finished 80c, or 1.86 per cent stronger, at A$43.70 and Santos was down 6c at A$12.72. BHP Billiton was up 39c at A$39.44, while fellow mining giant Rio Tinto added 15c to A$75.30.

- AAP