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MELBOURNE - The Australian stock market continued its run upwards today, with stronger banking and mining stocks helping the bourse to another record high.
CMC markets dealer Matthew Lewis said the Australian market had followed the lead of stronger markets in the United States.
"The positive lead from the US has flowed straight through to us," Mr Lewis said.
He said a fall in orders for durable goods in the US had sparked expectations that the US Federal Reserve might again cut interest rates, which boosted banking and financial stocks.
Rumours that US billionaire Warren Buffett may take an interest in US securities firm Bear Stearns also propped up the financial sector.
However, Mr Lewis said that the Australian market could still be volatile and would be awaiting the release of more economic data in the US tonight and inflation data in Australia tomorrow.
At the 1615 AEST close, the benchmark S&P/ASX200 index had risen 56.7 points to 6538.1, surpassing the previous closing record of 6483.0 set on September 24.
The All Ordinaries index had jumped 56.6 points to 6548.0, beating the prior closing record of 6491.4 set only yesterday.
On the Sydney Futures Exchange, at 1615 AEST, the December share price index contract was up 50 points to 6597, on a volume of 22,514 contracts.
Among the major banks, the National Australia Bank was up 78 cents at A$39.79, Westpac put on 39 cents to A$28.19, and ANZ lifted 49 cents to A$29.41.
The Commonwealth Bank added 38 cents to A$56.82 as it said it would open its doors to customers on Sundays at selected branches from October 14 in Victoria, South Australia and Queensland.
In the resources sector, global miner BHP Billiton was 36 cents richer at A$43.52 as it eyed duplicating its railway in the Pilbara region of Western Australia as part of a US$20 billion (A$22.85 billion) expansion of the division.
Rio Tinto improved A$1.45 to A$107.45.
Rio Tinto subsidiary Energy Resources of Australia surged A$1.13 to A$18.45 as ERA extended mining at its Ranger uranium mine in the Northern Territory until 2012 and increased the production outlook.
Oil and gas producer Woodside Petroleum ascended 23 cents to A$48.92. Woodside has decided to sell its troubled Mauritania assets to Malaysian-government owned Petroliam Nasional Berhad.
Santos was 25 cents better off at A$15.00.
On Wall Street overnight, the Dow Jones industrial average lifted 99.50 points to 13,878.15.
In the media sector, broadcaster Seven Network firmed 13 cents to A$13.25 as it moved closer to a multi-channel broadband-powered future with its takeover bid for wireless broadband provider Unwired. Unwired was up one cent to 48.5 cents.
News Corp was 23 cents richer at A$26.75, and its non-voting stock added 38 cents to A$25.19.
Publishing and Broadcasting was up 11 cents at A$19.28, and Fairfax was six cents heavier at A$4.62.
Telco Telstra was steady at A$4.35, and Optus-owner Singapore Telecommunications rose 10 cents to A$3.07.
Retailer Coles Group improved 26 cents to A$15.40, and supermarket rival Woolworths eased three cents to A$29.61.
Among gold stocks, Newmont backtracked 36 cents to A$5.14, Newcrest added 19 cents to A$28.60, amd Lihir surrendered six cents to A$3.87.
The price of gold in Sydney at 1641 AEST was USA$729.40 per fine ounce, down USA$2.50 on yesterday's close.
Among other stocks, investment firm Washington H Soul Pattinson gained 22 cents to A$9.30 as it posted a modest rise in annual earnings.
Forestry products firm Gunns slipped three cents to A$2.84 as it downgraded its annual net profit for 2006/07 by A$13.5 million to A$74.5 million after reviewing capital expenditure figures on its proposed Tasmanian pulp mill project.
Building materials company Brickworks sagged 10 cents to A$13.70 despite reporting an annual net profit increase of 5.2 per cent.
The top-traded stock by volume was petroleum and gas explorer Empire Oil & Gas, with 75.6 million shares worth A$1.5 million changing hands.
Empire was up 0.2 cents at 2.1 cents.
Preliminary national turnover was 1.97 billion shares worth A$7.23 billion, with 766 stocks up, 514 down and 353 unchanged.
- AAP