KEY POINTS:
The Australian stock market closed at record highs today, boosted by a strong lead from United States markets, takeover activity and the central bank's decision not to lift interest rates.
ABN Amro Morgan senior client adviser Roger Chandler said the local bourse today was driven by "madness", albeit positive.
"We had a very positive lead from overseas, and the Reserve Bank (of Australia) had the common sense not to increase rates until they have a look at the CPI (inflation) figures," Mr Chandler said.
He said, however, that the RBA's decision to hold rates at 6.25 per cent today was not the biggest influence on the market.
"If it were you would have seen the banks have a huge day when they have not done as well as the rest of the market," Mr Chandler said.
He said retailer Coles Group and diversified industrial group Wesfarmers were amongst the biggest moving stocks after Wesfarmers last night proposed a $20 billion takeover of Coles.
"That type of thing is good for the market because it puts other companies in play," Mr Chandler said.
At the 1615 AEST close, the benchmark S&P/ASX200 was 83.8 points, or 1.39 per cent, higher at a record 6097.2 - also a new intraday high - surpassing the previous record finish of 6036.1 set on February 23, 2007.
The all ordinaries also set new closing and intraday highs, closing 81.4 points, or 1.36 per cent, higher at 6079.0. That beat the prior closing record of 6009.3 also set on February 23, 2007.
On the Sydney Futures Exchange at 1620 AEST, the June share price index contract was up 50 points at 6124, on a volume of 20,202 contracts.
Coles Group rose 75 cents, or 4.66 per cent, to A$16.86. Wesfarmers gained A$1.69, or 4.58 per cent, to A$38.60.
On Wall Street overnight, the Dow Jones industrial average gained 128 points to 12,510.30 as lower oil prices calmed worries about inflation and news of rising home sales raised hopes that the US housing market was stabilising.
In the resources sector, global miner BHP Billiton lifted 55 cents to A$30.64, and Rio Tinto gained A$2.09 to A$80.99.
Oil and gas producer Woodside Petroleum was 47 cents weaker at A$38.78, and Santos firmed three cents to A$10.29.
Natural gas pipeline owner APA Group improved eight cents to A$4.34 after it said it would buy Origin Energy network assets for A$556.5 million. Origin was was off three cents at A$8.85.
Among the major banks, the National Australia Bank stepped forward 50 cents to A$41.20, Westpac put on seven cents at A$26.17, the ANZ gained 19 cents to A$29.84 and the Commonwealth Bank found 67 cents at A$51.00.
The Bank of Queensland ascended 26 cents to A$17.60 after it posted a 21 per cent rise in first-half net profit.
QBE Insurance Group jumped 66 cents to A$32.62 after reaffirming its profit guidance as it continues to shop for small acquisitions.
In the media sector, Publishing and Broadcasting rose 36 cents to A$20.21 as it and investment bank Macquarie Bank teamed to buy one of the largest casino operators in western Canada. Macquarie Bank was A$1.69 better off at A$84.18.
Regional pay television company Austar was up 6.5 cents at A$1.695 after it said it had received confidential approaches from third parties about its ownership.
Commercial television broadcaster Seven Network gained 14 cents to A$11.47 as it bumped up its stake in West Australian Newspapers in a move sparked by the proclamation of new laws liberalising the ownership of Australian media businesses.
West Australian Newspapers rose A$1.03 to A$17.00.
Fairfax Media dipped four cents to A$5.10.
News Corp was 33 cents richer at A$30.85 while its non-voting stock advanced 38 cents to A$28.97.
Retailer Woolworths was 60 cents heavier at A$27.85.
Telco Telstra put on nine cents at A$4.67, and Optus-owner Singapore Telecommunications strengthened seven cents to A$2.74.
In the gold sector, Newcrest was up 20 cents at A$24.00, and Lihir added six cents to A$3.27.
The price of gold in Sydney at 1657 AEST was US$664.80 per fine ounce, up 65 US cents on yesterday's close.
The top-traded stock by volume was gold and copper miner Oxiana, with 75 million shares worth A$221.17 million changing hands. Oxiana was up 21 cents at A$3.03.
Preliminary national turnover was 1.73 billion shares worth A$6.29 billion, with 772 stocks up, 487 down and 312 unchanged.
- AAP