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The Australian share market finished the week higher, bolstered by a stronger US lead that came with news from the Whitehouse of mortgage relief for borrowers.
The benchmark S&P/ASX200 index closed up 53.8 points, or 0.82 per cent, to 6654.7 and the All Ordinaries gained 53.5 points to 6714.
At 1615 AEDT, on the Sydney Futures Exchange, the December share price index contract was up 45 points higher to 6667, on a volume of 17,284 contracts.
The gains on Wall Street came after US President George Bush announced overnight a mortgage relief package to help 1.2 million distressed home owners .
CMC markets senior dealer Matt Lewis said the second day of gains on the local bourse suggested a level of confidence was creeping back into the market.
"Traders are seemingly optimistic about US regulators plan to limit subprime defaults," Mr Lewis said.
"This bodes well, with all the big four banks showing gains today.
"Commonwealth Bank and Westpac faired the best, gaining around 2 per cent each."
Mr Lewis said traders could have a nervous wait on their hands over the weekend, with the US Federal Reserve due to meet early next week to decide whether they would continue to cut official interest rates.
ABN Amro Morgans adviser Lisa Jarvis said the gains today came with a sell off just before the closing bell.
"There was a bit of a sell off at close, partly because the US futures were providing a negative lead in the run in for the night.
"And, earlier in the day, it looked like we were following Japan in a positive direction, but that faded a little.
Mrs Jarvis said the mining giants sold off.
"Rio Tinto rallied quite hard until 1530 (AEDT) then came off a bit."
Rio Tinto finished up 74 cents to $145.48 and BHP Billiton hit a close of $43.50, up 12 cents.
Incitec Pivot struck the $100 mark, gaining $3.92 to $101.99.
The banks were stronger, with Commonwealth Bank up 32 cents to $60.69, National Australia Bank climbed 16 cents to $39.22, Westpac up 63 cents to $28.93 and ANZ 36 cents higher to $28.48.
Gains in the price of crude oil overnight helped energy stock Woodside, up 63 cents to $48.33, while Santos was up three cents to $14.35, but Oil Search lost two cents to $4.74.
Coates Hire was steady at $6.53 after upgrading its earnings guidance, just days before its shareholders vote on a takeover bid.
News Corp gained 57 cents to $24.97 after news that Rupert Murdoch had given son James an expanded role, positioning him as a likely successor.
News Corp non-voting stock closed up 60 cents at $24.14.
Fairfax Media gained four cents to $4.81, while Ten Network rose five cents to $2.85 and Seven was up 35 cents to $13.95.
The media assets of the demerged Publishing and Broadcasting, now called Consolidated Media Holdings, were up four cents to $4.22 on a deferred settlement basis.
Telstra finished up two cents to $4.71, its instalment receipts were up two cents to $3.17.
Retailer Wesfarmers finished up 31 cents to $43.31, but rival Woolworths lost 11 cents to $34.43.
Qantas climbed 14 cents to $5.78.
At 1634 AEDT, the spot price of gold in Sydney was US$799.50 per fine ounce up US$6.90 from yesterday's US$792.60 close.
Gold miner Newcrest Mining was up 40 cents to $32.92, Lihir Gold also finished higher, up one cent to $3.75, but Newmont lost four cents to $5.68.
The top traded stock of the day was BMA Gold Ltd, with 146.2 million shares trading worth $7.2 million.
The company's share price gained 1.5 cents to 5.5 cents.
Preliminary market turnover was 1.82 billion shares worth $5.62 billion, with 747 higher, 530 lower and 357 unchanged.
- AAP