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The Australian share market closed higher today after a positive lead from Wall Street and local speculation over the big miners' mooted mergers.
At 1615 AEDT, the benchmark S&P/ASX200 was up 24.5 points, or 0.42 per cent, at 5867.4, while the broader All Ordinaries lifted 39.4 points, or 0.67 per cent, to 5,921.7.
On the Sydney Futures Exchange, the March share price index contract was up 52 points, or 0.87 per cent, at 5,830 on 35,601 contracts.
CMC Markets chief analyst David Land said that while the major indices finished ahead, they had slipped back from earlier highs of more than 6,000 points.
"We are keeping up that recurring theme of late of large trading ranges over the course of the day," Mr Land said.
Today's trading fell short of expectations reflected in earlier futures trading, he said.
"A lot of it in the early part of the day was gains on the BHP share price and on the Rio share price, and some of the banking stocks.
"That's what was driving everything earlier in the day."
Since morning trade, the banking stocks had reversed although big retailers, including Woolworths and Wesfarmers, had had a good day, Mr Land said.
At 1619 AEDT, BHP Billiton was up 77 cents, or two per cent, to $39.32 and Rio Tinto was up 80 cents, or 0.63 per cent, to $128.11.
But the banking sector was weaker today. ANZ dropped 19 cents to $26.70, Commonwealth Bank was down $2.12 to $49.00, NAB retreated $1.21 to $34.19 and Westpac reversed 28 cents to $26.24.
At 1622 AEDT, the spot price of gold in Sydney was US$909.50 per fine ounce, down US$16.40 from Friday's close of US$925.90 per fine ounce.
The gold producers were mixed, with Lihir Gold down 12 cents to $3.57, Newmont Mining losing 11 cents to $5.93 and Newcrest up 73 cents to $36.09.
Energy stocks also were mixed. Oil Search dipped nine cents to $4.17, Woodside Petroleum shed 54 cents to $47.96, while Santos added 59 cents to $13.37.
In market news, investment funds manager MFS will sell 65 per cent of its Stella tourism arm to CVC Asia Pacific for just over $409 million in cash.
Its shares are in a trading halt, last trading at 99 cents.
The stapled securities of property investment company Valad Property Group are also in a trading halt pending an announcement, which is expected to be about a proposed strategic alliance.
Valad's shares last traded at $1.22.
Argo Investments said it is well-positioned for further investment opportunities after posting a first-half net profit up 114.2 per cent.
Its shares closed 12 cents stronger at $7.94.
Queensland Gas Company Ltd today announced an $872 million alliance with British energy firm BG Group to build a liquefied natural gas (LNG) plant on the Queensland coast.
Queensland Gas shares surged 61 cents, or 17.84 per cent, to $4.03.
US stocks rose on Friday, capping Wall Street's best week in almost five years, after Microsoft Corp's US$44.6 billion (A$49.86 billion) bid for Yahoo Inc overshadowed news that American employers cut payrolls for the first time since 2003.
The Dow Jones industrial average finished up 92.83 points to 12,743.19, the Standard & Poor's 500 Index closed 16.87 points higher to 1,395.42 and the tech-heavy Nasdaq Composite Index had added 23.50 points to 2,413.36.
Media stocks firmed, with Fairfax steady on $4.10, News Corp up 21 cents to $22.13 and its non-voting scrip gaining 31 cents to $21.62, while Consolidated Media had edged up four cents to $4.51.
At 1630 AEDT the retailers were stronger, with Coles owner Wesfarmers up $1.60 to $39.00, Woolworths had added 37 cents to $29.77 and David Jones had risen six cents to $4.65.
The most heavily traded stock was Empire Oil and Gas Ltd with 376.7 million shares changing hands worth $7.4 million.
Its shares almost doubled in value, adding 1.1 cents to 2.3 cents after it announced it had won government approval to drill for oil at a West Australian site.
Preliminary market turnover totalled 1.85 billion stocks with a total value of $6.77 billion, with 699 shares up, 555 down and 322 unchanged.
- AAP
