Australian stocks: Market closes higher

The Australian share market overcame a negative start to close higher, boosted by stronger energy and financial sectors, but the volume of trading was low.

At the 1615 AEDT close, the benchmark S&P/ASX200 index was up 30 points, or 0.95 per cent, at 3,184.5, while the broader All Ordinaries gained 21.5 points, or 0.69 per cent, to 3,143.2.

On the Sydney Futures Exchange, the March share price index futures contract was 38 points higher at 3,187 on a volume of 20,681 contracts, according to preliminary calculations.

"There were good leads from the financial stocks in the US," IG Markets research analyst Ben Potter said."

"The UK (financial sector) wasn't so good, but in the US we saw Bank of America up about 20 per cent, so that's carrying over to Australia."

Energy stocks gained on the back of higher oil prices resulting from speculation that Opec (Organisation of Petroleum Exporting Countries) would cut production levels.

But Mr Potter said the overall volume of trading was very, very low as investors sat on the sidelines, spooked by US billionaire investor Warren Buffett's comments overnight that the US economy had fallen off a cliff.

Among the major banks, National Australia Bank lifted 25 cents to $16.28, the Commonwealth Bank strengthened $1.14 to $27.78, ANZ Banking Group rose 21 cents to $12.74, and Westpac ascended 55 cents to $16.45.

In the resources sector, global miner BHP Billiton improved 16 cents to $29.28, and Rio Tinto was 80 cents richer at $48.30.

Oil and gas supplier Woodside Petroleum was up $1.18 at $37.09, and Santos jumped 65 cents to $16.37.

Telco Telstra was off 14 cents at $3.14 as it said it would begin upgrading its capital cities cable broadband networks in a bid to stem the diminishing fixed line revenue and show it has an alternative to the government's broadband plans.

Optus-owner Singapore Telecommunications picked up two cents to $2.49.

On Wall Street overnight, the Dow Jones Industrial Average index fell 79.89 points, or 1.21 per cent, to 6,547.05 as investors were torn between hopes for the financial sector and fears about the slide of the broader US economy.

In the gold sector, Newmont dipped 12 cents to $5.87, Newcrest sagged 65 cents to $30.75 and Lihir backtracked 10 cents to $3.05.

At 1626 AEDT, the price of gold in Sydney was US$914.40 per fine ounce, down US$22.60 on yestrday's close of US$937.00.

Among media stocks, News Corp was off 31 cents to $9.05 and its non-voting scrip retreated 30 cents to $7.97.

Consolidated Media firmed 0.5 cents to $1.925 and Fairfax eased 1.5 cents to 83 cents.

Retailer Woolworths was 57 cents poorer at $25.14 and Wesfarmers, which owns Coles, added 38 cents to $17.19.

Among other stocks, clothing maker Pacific Brands put on two cents to 17 cents as it said recently retrenched workers could keep their jobs if a buyer can be found for its premises.

The top-traded stock by volume was property firm Goodman Group, with 95.8 million shares worth $14.74 million changing hands. Goodman shares were 0.5 cents higher at 16 cents.

Preliminary national turnover was 1.13 billion shares worth $3.19 billion, with 350 stocks up, 480 down and 297 unchanged.

- AAP