Australian stocks: Market closes higher, led by banks, BHP and RIO

SYDNEY - The Australian sharemarket finished higher yesterday, with market stalwarts BHP Billiton, Rio Tinto and the big four banks all making solid gains.

At the 1605 AEST close, the benchmark S&P/ASX 200 index was 8.9 points higher at 4127.8 while the all ordinaries index was up 6.2 points at 4112.4.

"Materials and banks - the big sectors within the index - have pushed it higher," said CMC Group senior dealer Phil Martin.

BHP Billiton added 16 cents to $18.00 and Rio Tinto gained 20 cents to $44.80.

"That was as metal prices gained overnight," Mr Martin said.

For the banks, Mr Martin said the gains probably reflected a continued reaction to yesterday's decision by the Reserve Bank to keep official interest rates on hold.

"People still think there's some value to be had," he said.

National Australia Bank closed 10 cents higher at $28.85, the Commonwealth Bank was up 35 cents at $35.66, the ANZ gained five cents to $20.90 and Westpac moved 20 cents higher to $19.20.

On the Sydney Futures Exchange, the June share price index contract gained nine points to 4142 on a volume of 11,815 contracts, according to preliminary calculations.

Bank of Queensland powered ahead nearly four per cent, up 41 cents to $10.71, as its $35.9 million half-year net profit exceeded market expectations.

However the insurance sector sank.

General insurer Promina fell five cents to $5.02, QBE Insurance slipped 11 cents to $14.77 and Insurance Australia Group lost nine cents to $6.16.

AMP dipped three cents to $6.89 and AXA edged down two cents to $4.12.

Energy stocks also lost ground as the oil price pulled back to US$55.85 a barrel.

Woodside Petroleum slid 14 cents to $25.46 and Santos lost two cents to $9.38.

The property sector lost ground today, with shopping centre giant Westfield finishing two cents lower at $16.12.

Shares in developer Multiplex also went backwards, down six cents at $4.24, on investor concerns about its troubled Wembley Stadium project.

But Mirvac Group shifted up one cent to $4.33 ahead of its announcement that it was launching a new $487 million property trust.

Among media stocks, News Corp was weaker today, down seven cents to $22.53, with its non-voting shares falling by seven cents to $21.75.

Publishing and Broadcasting Ltd also fell, ending up 17 cents lower at $14.96.

But newspaper publisher Fairfax was up three cents to $4.22.

Australia's biggest telecommunications provider, Telstra, closed two cents higher today at $5.04, with rival Singapore Telecommunications - the parent company of Optus - up three cents to $2.07.

Shares in Qantas Airways gained two cents to $3.42 while rival Virgin Blue slipped 2.5 cents to $1.87.

Virgin's majority owner Patrick Corp fell one cent to $5.75.

Gold stocks were mixed.

AngloGold Ashanti gained 10 cents to $9.08 and Newmont Mining shifted up four cents to $5.46, but Newcrest Mining fell 28 cents to $16.94.

At 1442 AEST, the spot price of gold was US$427 per ounce, US$1.875 higher than yesterday's close.

The top traded stock by volume was Reefton Mining, with 144.1 million stocks traded for a total value of $13.54 million. The stock gained 1.8 cents to 9.5 cents.

Preliminary national turnover was 1.04 billion shares traded for a total value of $2.61 billion, with 454 stocks rising, 479 falling and 343 unchanged.

- AAP