Australia stocks: Market closes higher

SYDNEY - The Australian stock market ended the day stronger yesterday as cashed up investors remained bullish early into the reporting season.

Hudson Securities institutional dealer Ric Klusman said the local bourse had another good run as investors remained positive despite weakness in the US overnight.

"It just looks like every fund manager in Australia is buying on weakness because they've got too much cash," he said.

At the 1605 AEST close, the benchmark S&P/ASX200 index was 2.5 points higher at 4377.3, while the all ordinaries index gained 4.6 points to 4333.1.

On the Sydney Futures Exchange, the September share price index contract retreated six points to 4351 at 1608 AEST.

"We're having another pretty good run - but the drain on the market today is BHP," Mr Klusman said.

BHP Billiton lost 20 cents to $19.60 as metal prices declined last night while Rio Tinto also dropped 20 cents to $50.40.

But small uranium miners Jindalee Resources jumped nine cents to 49 cents and Marathon Resources gained 13 cents to 79.5 cents after the federal government yesterday declared the Northern Territory open to uranium mining.

On Wall street overnight, stocks fell as July sales from large retailers failed to impress investors and higher oil prices continued to raise concern about energy costs.

The Dow Jones industrial average fell 87.49 points to 10,610.10 while the Standard & Poor's 500 Index slipped 9.18 points to 1235.86.

The Nasdaq Composite Index dropped 25.49 points to 2191.32.

- AAP