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SYDNEY - The Australian stock market closed at a record high, largely on the back of an excellent performance by resource stocks and a strong banking sector.
The stellar performance in resources came as analysts upgraded the outlook for commodity prices.
At the close, the benchmark S&P/ASX200 index was up 49.5 points to 6400.6, while the all ordinaries rose 46.5 points to 6429.5
At 1623 AEST on the Sydney Futures Exchange, the September share price index contract was 57 points higher at 6421 on a volume of 13,587 contracts.
Austock Securities senior client adviser, Michael Heffernan said the growth in BHP Billiton, Australian's biggest company, was astounding.
"They are absolute boomers, BHP has been astronomic, rising four or five dollars in the last month, it's just explosive and it's making up for a lacklustre prior year," Mr Heffernan said.
"It's just astonishing - that's the only thing you can say. "
Mr Heffernan said the resources sector had dragged up the rest of the bourse, though some sectors were lower because of the possibility of an interest rates rise.
"There are only three sectors showing a drop; consumer discretionary, property trusts and utilities, and they weren't even down by much, it's just the spectre of interest rates affecting those stocks," he said.
At the close, BHP Billiton was up A$1.29 or 3.44 per cent to A$38.83 and Rio Tinto had gained A$1.35 or 1.32 per cent to A$103.40.
Elsewhere in the resources sector, Zinifex shares soared A$1.10, or 5.44 per cent, to A$21.32 and Oxiana rose 11 cents, or 2.94 per cent to A$3.85, amid speculation the pair may merge to ward off foreign predators.
The soaring oil price helped Santos climb 37 cents, or 2.7 per cent, to A$14.08, while Woodside Petroleum rose 14 cents to A$47.14.
At 1637 AEST, the spot price of gold was US$654.60, up US$6.20 on yesterday's Sydney close.
Newcrest Mining gained five cents to A$23.14 and Newmont Mining was up 15 cents or 3.14 per cent to A$4.92.
The banks were generally solid, though NAB slipped four cents to A$40.10. Westpac gained 15 cents to A$26.55, Commonwealth was up 78 cents to A$56.06 and ANZ rose nine cents to A$29.48.
In the media sector, PBL edged up one cent to A$19.31, Fairfax was steady at A$4.91, News Corp shed four cents to A$27.24 and its non-voting scrip was down 13 cents to A$25.14.
Amongst the telcos, Telstra was steady at A$4.62 and its instalment receipts were up two cents to A$3.15. Rival Singapore Telecommunications, owner of Optus, lost two cents to A$2.63.
In the transport sector the looming low-price fare war between Tiger and Qantas took some skin off the Flying Kangaroo's share price, which was down one cent to A$5.58.
Virgin Blue was steady at A$2.41 while freight giant Toll tumbled 25 cents to A$14.75.
The Coles Group was up three cents to A$15.13, and its suitor, diversified conglomerate Wesfarmers also gained 30 cents to close at A$41.35. Rival Woolworths put on 55 cents to A$29.05.
Republic Gold was the most traded stock, with 52.41 million stocks changing hands at a value of A$1.3 million.
Total market turnover was 1.55 billion trades at a value of A$5.42 billion, with 639 stocks up, 669 down and 319 unchanged.
- AAP