Australian stocks: Telstra gains on sale approval

Despite a drop in commodity prices, mining stocks defied the market trend with Rio Tinto the best of the bunch, posting a healthy 85 cents gain to reach $52.44.

BHP Billiton was up 11 cents to $20.70 and Alumina firmed one cent to $6.01.

And retail stocks also held their ground with Woolworths up one cent to $16.13 while supermarket rival Coles Myer rose seven cents to $10.22.

At 1643 AEST the spot price of gold in Sydney was $US449.6 per fine ounce, up $US2.55 on yesterday's close.

Gold stocks responded to the higher prices with Newmont Mining up 21 cents to $5.68, Newcrest rising 37 cents to $18.80 and Lihir Gold climbing four cents to $1.57.

Preliminary market turnover was 1.5 billion shares worth $6.13 billion with 502 stocks rising, 450 falling and 340 remaining unchanged.

- AAP