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SYDNEY - The Australian share market moved into fresh record territory for the third time this week, as investors jumped back into the bourse on speculation the US Federal Reserve would again cut interest rates.
CMC Markets dealer Matthew Lewis said the publication of weak US housing data overnight prompted brokers to speculate about the likelihood of another US rate cut.
"This has also been fuelling demand and helping to ease credit related concerns in the market," he said.
On September 18, the US Federal Reserve cut rates by 50-basis points to 4.75 per cent.
At the 1615 AEST close, the benchmark S&P/ASX200 index had risen by 29.7 points to 6567.8, surpassing the previous closing record of 6538.13 set only yesterday.
It touched a fresh record intra-day high of 6594.4, smashing the record intraday high of 6550.7 set yesterday.
The All Ordinaries index ended 32.9 points higher to 6580.9, also beating the yesterday's closing record of 6548.05.
It hit an unprecedented intra-day high of 6601, well above yesterday's record high of 6556.4.
On the Sydney Futures Exchange, the December share price index contract was up 56 points to 6634 on a volume of 20,725 contracts.
Mr Lewis said the US interest rate speculation and resource stocks carried the market into another record high.
"BHP and Rio once again surged to new record highs, each gaining more than two per cent on the back of stronger base metal prices overnight," he said.
The world's largest miner BHP Billiton Ltd was A$1.03 richer at A$44.55 one day after it said it is duplicating its railway in the Pilbara region of Western Australia as part of a US$20 billion (A$22.85 billion) expansion of its iron ore division.
GRD Minproc shares jumped six cents to A$2.40 after announcing today that it won a contract to carry out preliminary engineering for the expansion of BHP's Olympic Dam mine in South Australia.
Rio Tinto Ltd improved 77 cents to A$108.22 after its boss Tom Albanese said the iron ore market remains tight, and after shareholders approved the takeover of Alcan.
In New York overnight stocks moved higher amid raising expectations of another Fed rate cut.
The Dow Jones industrial average was up 34.79 points at 13,912.94 and the Standard & Poor's 500 Index rose 5.96 points to 1,531.38.
Mr Lewis said the energy sector has been another big mover in the market, after crude oil rose above US$82 a barrel overnight.
"We have seen heavy trading in Woodside Petroleum today pushing the price back over A$50 a share," Lewis said.
Oil and gas producer Woodside jumped A$1.28 to A$50.20, while Santos was five cents better off at A$15.05.
However, Oil Search fell seven cents at A$4.25.
The major banks were mixed, with Westpac adding on 31 cents to A$28.50 and ANZ lifting 29 cents to A$29.70.
But Commonwealth Bank lost 43 cents to A$56.39 and National Australia Bank lost eight cents at A$39.71.
The nation's fifth largest bank, St George, was 47 cents higher at A$35.39.
In the media sector, Austar Communications share price soared more than eight per cent, up 13 cents, to A$1.70 on speculation that Seven Network Ltd could be seeking the wireless internet spectrum owned by regional pay TV player.
Seven's shares dipped 15 cents to A$13.10.
News Corp was five cents cheaper at A$26.70, but its non-voting stock added three cents to A$25.22.
Publishing and Broadcasting was up 42 cents at A$19.70, while Fairfax Media was 10 cents heavier at A$4.72.
Telco Telstra was one cent higher at A$4.36, and its installment receipts were also one cent firmer at A$2.86.
Optus-owner Singapore Telecommunications rose 10 cents to A$3.07.
Retailer Coles Group Ltd was steady at A$15.40, and supermarket rival Woolworths Ltd gained 10 cents to A$29.71.
The gold miners were mixed, with Lihir adding seven cents to A$3.94, Newmont fell three cents to A$5.11, and Newcrest lost 60 cents to A$28.00.
The price of gold in Sydney at 1641 AEST was USA$737.10 per fine ounce, up USA$6.25 on yesterday's close.
Among other movers on the day, New Zealand-based gaming and cinema firm SkyCity Entertainment Group Ltd said a potential buyer was trawling through its books.
Its shares gained 15 cents to A$4.48.
Software and technology company Datasquirt Ltd today has become the 211th listing in 2007 on the Australian stock exchange (ASX).
Its shares closed one cent higher at 91 cents compared to its issue price of 90 cents.
The top-traded stock by volume was Newsat Ltd, with 129.8 million shares worth A$913,977 changing hands.
The information technology company was up 0.1 cents at 0.7 of a cent.
Preliminary national turnover was 2.23 billion shares worth A$11.9 billion, with 761 stocks up, 501 down and 342 unchanged.
- AAP