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SYDNEY - Australian stocks burst back into record territory today, re-energised by strong gains among the miners and banking stocks, and buoyed by Wall St.
At the 1615 AEST close, the benchmark S&P/ASX200 index hit a record high, up 50.4 points to 6236.9, while the all ordinaries also posted a new benchmark, up 46.1 points to 6215.
On the Sydney Futures Exchange, the June share price index contract closed 48 points higher at 6284 on a volume of 16,382 contracts.
ABN Amro Morgans Ipswich manager Tony Russell said the impetus for today's recovery came from Wall Street, which ended at a near-record high, and more positive US economic data.
"The market is once again performing very well on the back of a stronger Wall Street last night, and economic data coming out of the United States," he said.
"The US economy is now looking to be a soft landing rather than some recessionary talk that was mentioned by (Alan) Greenspan (former Fed chairman) a month or so ago."
However, despite a fresh highs on the local bourse, Mr Russell said volatility would continue in the coming weeks.
"The volatility will still remain, certainly our market in the short term is becoming fully valued, so we might see some consolidation in the market," he said.
Mr Russell said stronger commodity prices overnight boosted the local miners, while growing confidence that interest rates would remain unchanged was probably helping the banking sector.
The resources sector was again largely responsible for triggering the local recovery, with mining giant BHP Billiton adding 34 cents to A$30.40 and Rio Tinto A$1.09 at A$84.50.
The big news in the banking sector concerned the Commonwealth Bank, which today said it was on track to deliver strong annual earnings growth.
CBA shares jumped with the announcement, rising 65 cents to A$53.30.
The other big four banks also posted gains, with NAB putting on 84 cents to A$44.02, Westpac 46 cents to A$27.49, and ANZ 24 cents to A$31.27.
Shares in explosives, paint and chemicals firm Orica Ltd and its rival explosives manufacturer, Dyno Nobel Ltd, zoomed upwards in early trading today after industry rival Orica rejected a takeover offer worth almost A$10 million.
The bid, from a private equity consortium comprising Bain Capital Partners, Blackstone Capital Partners, Pacific Equity Partners and Morgan Stanley Principal Investments, was rejected because undervalued the company, Orica said.
Shares in Orica skyrocketed after the company announced its intentions, rising A$5.61 or 20.11 per cent, to close at A$33.50.
Dyno Nobel shares were closed 17 cents higher at A$2.48.
The energy stocks all finished higher, despite weaker crude prices.
Woodside Petroleum today announced it had posted a 25.9 per cent increase in first quarter oil production compared with the same period last year, while sales revenue jumped 24.9 per cent.
Woodside Petroleum finished up 21 cents at A$39.15,
Santos added 20 cents to A$10.85, and Oil Search three cents to A$3.67.
Retailer Woolworths continued its upward climb a day after releasing its strong third quarter sales figures.
Shares in the supermarket giant brightened 12 cents to A$28.90, however rival retailer Coles lost ground, dropping nine cents to A$17.13.
Media stocks ended the day mixed.
Fairfax Media Ltd gained 12 cents to A$5.18 ahead of a vote by Rural Press shareholders tomorrow that is expected to approve a merger of the two companies.
However, rival publisher News Limited shed 23 cents to A$30.04 with its non-voting scrip declining 30 cents to A$28.20.
The Seven Network finished up, eight cents stronger at A$11.25, as did PBL which rose 29 cents to A$20.00.
Rival television network Ten Network lost three cents to A$3.12.
Takeover target APN News and Media fell away slightly, losing three cents to A$6.01.
In other media news, regional pay television network Austar United Communications announced a 17 per cent increase in first quarter earnings.
Austar's share price fell 2.5 cents to A$1.735.
At 1635 AEST the spot price of gold in Sydney was US$1.95 stronger at US$689.90 per fine ounce.
However the gold miners were subdued, with Newcrest down 34 cents at A$23.08, and Newmont up one cent to A$5.39.
Lihir was untraded at A$3.36.
The most traded stock of the day by volume was Dyno Nobel, with 43.63 million shares worth A$108.9 million changing hands.
Preliminary market turnover was 1.71 billion shares worth A$6.51 billion, with 692 companies ending higher, 582 lower and 346 unchanged.
- AAP