Wesfarmers and banks lift ASX

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The Australian sharemarket closed higher yesterday, aided by strong sales data from Wesfarmers and buoyant banking stocks.

The benchmark S&P/ASX200 index was up 27.7 points, or 0.62 per cent, at 4486.1 at the close, while the broader All Ordinaries index rose 29.3 points at 4504.4.

On the Sydney Futures Exchange, the September share price index contract was 32 points higher at 4468 on a volume of 22,513 contracts.

A positive lead from Wall St and the results of European bank stress tests, which only seven banks failed, also helped sentiment.

"It may call into question the exact metrics of the test, but certainly the market seemed to hold it in reasonable stead," said Burrell Stockbroking adviser Daniel Manley.

Shares in Commonwealth Bank rose 25c to A$51.49, Westpac gained 42c to A$23.15, ANZ was up32c at A$22.73, National Australia Bank rose 40c to A$24.77 and Macquarie Group finished 31c higher at A$39.74.

Retailers were generally stronger after Wesfarmers surprised the market with stronger-than-expected sales figures.

Wesfarmers lifted sales by 4.3 per cent at its Coles supermarket business in the 12 months to June 27. Shares in Wesfarmers rose 94c, or 3.23 per cent, to A$30.08.

Rival Woolworths gained 16c, or 0.62 per cent, to A$25.83.

- AAP