SYDNEY - The Australian share market closed stronger yesterday, with the resources and banking sectors pushing trading back into positive territory.
The S&P/ASX200 was up 39.4 points to 4468.2 while the all ordinaries rose 37.1 points to 4429.4.
However, Bell Potter senior adviser Stuart Smith said yesterday's strength may be masking a period of ongoing weakness after last week's two-day market correction.
"I get the feeling this could be a bit of a bear trap because the market is still pointing down in my technical analysis," he said.
The banking sector served as a safe-haven for investors yesterday while the resource sector also found strength in the absence of any bad news, he said.
The big four banks all rose today, led by ANZ which jumped 45Ac or almost 2 per cent to A$23.34.
Commonwealth Bank put on 45Ac to A$37.45, Westpac found 22Ac to A$20.68 and National Australia Bank gained 28Ac to A$32.15.
Mining giant Rio Tinto gained 48Ac to A$57.48 while BHP Billiton climbed 50Ac to A$20.83.
Both firms were yesterday cleared by a European Commission investigation into alleged anti-competitive practices in the copper concentrate market.
News Corp gave up 3Ac t to A$20.60 but its non-voting scrip gained 8Ac to A$19.68.
A US court yesterday refused to set an expedited trial date in a pending shareholder litigation over the company's decision to extend a "poison pill" arrangement without shareholder approval.
Qantas firmed 3Ac to A$3.38
In other news, shares in CSL fell A$1.96, or almost 5 per cent, to A$37.44 after a recent strong run.
The blood products and vaccines company said it expects earnings per share from continuing operations to grow by about 10 per cent in 2005/06.
- AAP
<EM>Australian stocks:</EM> Big banks, resource stocks lead rally
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