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MELBOURNE - The Australian share market closed over one per cent higher today as energy stocks were buoyed by record oil prices overnight.
The benchmark S&P/ASX200 index gained 58 points, or 1.09 per cent, to 5,400.4, while the broader All Ordinaries added 55 points, or 1.02 per cent, to 5,465.9.
At 1618 AEST on the Sydney Futures exchange, the June share price index had risen 69 points to 5,451 on a volume of 22,300 contracts.
ABN Amro Morgans private client adviser Bill Bishop said the market had produced an upside surprise despite a weak lead from Wall Street.
While energy stocks had fared well, the financial sector had also staged a unexpected "major turnaround" today, he said.
"One swallow does not a summer make but it was very nice to see it happen," he said.
Mr Bishop said an improvement in Asian markets may have helped financial stocks along with an emerging expectation that the Reserve Bank of Australia (RBA) may leave interest rates alone.
"The RBA hasn't said it's definitely going to raise rates. It's just a glimmer of hope and the market is grasping at any optimistic straw."
On the New York Mercantile Exchange overnight, May crude increased US$1.57 to a record US$111.71.
Oil Search wsa bumped even higher by news it had sold a package of its Middle Eastern assets for US$200 million (A$216.01 million) to Kuwait Energy.
Its shares rose 22 cents, or 4.61 per cent, to $4.99, Woodside Petroleum gained $1.47, or 2.71 per cent, to $55.77 and Santos advanced 55 cents, or 3.65 per cent, to $15.60.
The big miners were mixed as BHP Billiton increased 35 cents to $42.00 but Rio Tinto dipped 19 cents to $138.11.
It appears less likely the central bank will deliver another interest rate rise in 2008 after it signalled inflationary pressures were likely to ease according to minutes of its last monthly meeting, released today.
Most bank stocks took heart, with Commonwealth Bank gaining $1.09 to $41.58, Westpac advancing nine cents to $22.55 and st George gaining 76 cents to $24.50.
But the National Australia Bank slipped 10 cents to $28.40 and ANZ dropped five cents to 20.40.
Goldminer Lihir gained 21 cents to $3.39, Newcrest Mining advanced 88 cents to $33.47 but Newmont Mining slipped four cents to $4.85
In market news, Australia's largest home insurer, Insurance Australia Group (IAG), has rejected a $7.45 billion takeover proposal from rival QBE Insurance Group as "totally inadequate".
IAG shares, the second-most heavily traded on the stock exchange today, surged 33 cents, or 8.55 per cent, to $4.19 while QBE slipped 30 cents, or 1.29 per cent, to $22.90.
Box and packaging giant Amcor gained six cents to $6.67 after announcing it will sell two packaging plants in a restructure of its Western European operations.
Struggling property fund Rubicon America Trust edged up one cent to 17 cents after it sold a Miami property for US$49.6 million (A$53.6 million) to help pay debt.
The local bourse shrugged off a weak lead from Wall Street overnight where energy companies gains failed to offset more jitters among the financials.
The Dow Jones industrial average slipped 23.36 points, or 0.19 per cent, ending at 12,302.06. The Standard & Poor's 500 Index declined 4.51 points, or 0.34 per cent, to 1,328.32.
The Nasdaq Composite Index dropped 14.42 points, or 0.63 per cent, to 2,275.82
Retail stocks were mixed as Coles owner Wesfarmers fell 62 cents to $36.28. and Woolworths lost 76 cents to $29.70 while upmarket trader David Jones added one cent to $3.40
Media stocks were mostly poorer. Fairfax Media lost two cents to $3.21 but Consolidated Media gained three cents to $3.43.
News Corp slipped 47 cents to $19.81, its non-voting stock dipped 49 cents to $19.18 and Seven Network shed two cents to $9.26.
Seven's chief executive David Leckie is in a serious but stable condition in St Vincent's Hospital in Sydney after being admitted for a finger injury.
The most heavily traded stock was Empire Oil & Gas with a total of 63.97 million shares changing hands at a total value of $1.25 million.
Its shares gained 0.2 cents to two cents.
Overall market turnover was 1.16 billion shares changing hands for a total value of $4.94 billion.
Of those, 583 shares rose, 515 fell and 343 were unchanged.
- AAP
