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MELBOURNE - The Australian stock market closed higher today, led by big miners BHP Billiton and Rio Tinto.
ABN Amro Morgans private client adviser Peter Knight said BHP and Rio had the most influence upon the local market today.
"They're been fairly strong. Base metals prices overnight were very good, and I think, out of the blue-chip stocks, they (BHP and Rio) still represent fairly decent value," Mr Knight said.
He said diversified industrials group Wesfarmers, which is spearheading a A$19.7 billion bid to buy retailer Coles Group, also had a good day.
"They're looking fairly good in their bidding for Coles' assets," Mr Knight said.
Mr Knight said that although United States markets were stronger overnight, Wall Street had not been a major driver of the local bourse.
At the 1615 AEST close, the benchmark S&P/ASX200 index was up 32.6 points at 6293.8, while the all ordinaries rose 28.7 points to 6317.1.
On the Sydney Futures Exchange, the June share price index contract was 23 points higher at 6291, on a volume of 33,379 contracts, according to preliminary calcualtions.
In the resources sector, BHP Billiton firmed 10 cents to A$34.00, and Rio Tinto strengthened A$1.50 to A$97.40.
Iron ore project developer Fortescue Metals Group was in a trading halt. The media has speculated that the company is seeking to tap the market for about A$1 billion to fund potential expansion to its Pilbara project.
Fortescue last traded at A$34.95.
Oil and gas producer Woodside Petroleum gained 48 cents to to A$45.00.
Santos lifted 31 cents to A$13.90 as it lodged a formal submission to the South Australian government regarding the state government's review of a 15 per cent shareholding restriction on Santos stock.
Among the major banks, the National Australia Bank was 37 cents richer at A$40.57, Westpac rose 17 cents to A$25.53, and the Commonwealth Bank improved 42 cents to A$54.50.
The ANZ found 14 cents at A$28.99 as it appointed Alex Thursby from the Standard Chartered Bank in Singapore to head its new Asia Pacific Division.
Diversified industrial group Wesfarmers jumped A$1.50 to A$42.39.
On Wall Street overnight, the Dow Jones industrial average gained 71.38 points to 13,553.73 as a two per cent gain in oil prices boosted energy shares, while data showing moderate inflation lifted optimism over the US economy.
In the retailing sector, Woolworths was 51 cents higher at A$27.51 as it said it was appealing the New Zealand competition watchdog's rejection of its proposed takeover bid for The Warehouse Group Ltd.
Coles Group was up 11 cents at A$16.70.
Telco Telstra gained four cents to A$4.82, and Optus owner Singapore Telecommunications scraped off one cent to A$2.59.
In the media sector, News Corp stepped forward 38 cents to A$28.63 while its non-voting scrip gained 46 cents to A$26.60.
Publishing and Broadcasting descended 26 cents to A$19.20, and Fairfax put on four cents at A$4.74.
In the gold sector, Newmont was six cents richer at A$4.76, Newcrest added four cents to A$23.39, and Lihir was steady at A$3.13.
The price of gold in Sydney at 1639 AEST was US$650.80 per fine ounce, up 15 US cents on yesterday's close.
Among other stocks, investment firm Babcock & Brown Ltd rose A$1.12 to A$33.34 as it acquired laundry equipment services provider Coinmach Service Corp in the US for A$850 million.
Macquarie Office Trust dipped two cents to A$1.63 as it took full control of an Atlanta office building from private equity outfit Blackstone and was negotiating to buy the group out on another four properties.
Market debutant and recruitment company Rubicor Group closed at 95.5 cents, 4.5 cents down on their issue price of A$1.00.
The top traded stock by volume was drilling services provider Boart Longyear, with 63.4 million shares worth A$140.85 million changing hands. Boart was two cents lower at A$2.22.
Preliminary national turnover was 2.03 billion shares worth A$7.19 billion, with 687 stocks up, 602 down and 379 unchanged.
- AAP