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MELBOURNE - Australian stocks ended higher, as takeover activity and speculation gives the market a boost.
At the 1615 AEST close the benchmark S&P/ASX200 index was up 66.2 points at 6317.6, while the all ordinaries added 63.8 points to 6338.8.
On the Sydney Futures Exchange, the June share price index futures contract was 56 points higher at 6328 on a volume of 16,132 contracts.
Austock Securities private client adviser Michael Heffernan said it had been a wonderful day given that the US markets were closed for a public holiday yesterday.
"It's a wonderful day given that there was absolutely no lead from overseas last night," he said.
"So after a breather yesterday we're back on track today."
Mr Heffernan said two of the highlights of the day were Symbion and Healthscope, after the latter launched a A$2.86 billion cash-and-scrip bid for pathology, medical centre and drugs group Symbion.
Healthscope ended 10 cents higher at A$5.84, while Symbion picked up one cent at A$4.40.
Woolworths was the beneficiary of Coles' woes, after the latter's shares plunged on the decision by private equity raider Kohlberg Kravis Roberts (KKR) to abandon a consortium planning a bid for Australia's second largest retailer.
Woolworths climbed 73 cents to A$28.07 and David Jones put on one cent to A$5.22, but Coles shed 73 cents to A$16.65.
Banks were a positive influence on the local bourse, with Commonwealth swelling 69 cents to A$56.04, NAB firming 58 cents to A$42.75, Westpac improving 30 cents to A$26.39 and ANZ advancing 13 cents to A$29.17.
Resources were also a positive influence on the market.
Mr Heffernan noted that Rio powered ahead as speculation mounted in the market that it might be preparing a bid for Canadian aluminium producer Alcan Inc.
While the world's biggest miner, BHP Billiton, was 57 cents richer at A$31.70, Rio Tinto added a whopping A$2.21, or 2.35 per cent, to A$96.36.
"It could be the first one to get through the A$100 barrier," Mr Heffernan said.
At 1622 AEST the price of gold was 65 US cents softer at US$655.70 per fine ounce.
Newcrest followed the price of gold downwards by 15 cents to A$21.74, as did Newmont, which lost four cents to A$4.76, but Lihir managed to eke out a gain of three cents to A$3.13.
Energy plays also showed gains, with Santos improving nine cents to A$12.99 and Woodside advancing 12 cents to A$44.50.
Telecommunications giant Telstra added eight cents to A$4.84, but Qantas was one of the few losers. It dropped one cent to A$5.73, just a shade off its record high yesterday.
Life insurer Tower Australia managed to close steady at A$2.30, despite revealing it had fallen behind its revenue and earnings targets for 2008 to 2010, after losing a big mandate from fund manager Colonial First State.
Media made a confident move upwards, News Corp adding 17 cents to A$29.21, its non-voting stock rose three cents to A$27.38 and PBL gained 10 cents to A$21.32 after yesterday saying it plans to sell another 25 per cent of its media joint venture and give up control of its free-to-air television and magazine assets.
Mr Heffernan said that while some retail sales data was expected tomorrow there was nothing maor on the horizon, whether economic or in corporate reports, to serve as a significant negative influence on the market.
The most traded stock by volume was coal-bed methane play Molopo, which added 4.5 cents to 21.5 cents a share, after upping the gas recovery estimate for a project in China.
A preliminary 59.87 million of its shares worth A$11.79 million changed hands.
Preliminary turnover on the market was 1.57 billion shares worth A$5.57 billion, with 692 companies ending higher, 604 lower and 339 unchanged.
- AAP