Australian stocks: Late rally to finish slightly higher

The Australian stock market rallied in late trading today to end the week in a positive mood, helped by a strong finish by the resources sector.

The S&P/ASX200 pulled ahead by 2.1 points to 4580.1 while the all ordinaries gained 3.2 points to 4534.8, at the 1615 AEDT close.

On the Sydney Futures Exchange the December share price index contract lifted 15 points to 4581.

Rio Tinto reversed losses during the day to close 45 cents stronger at $63.55 while BHP Billiton rose 24 cents to $21.80.

Woodside, spurred on by the price of oil going through the $US60 barrier again, jumped 62 cents to $36.42.

ABN Amro Morgans client adviser Margaret Morrissey said she was surprised by the late turnaround of the market and put it down to bargain hunters moving in after yesterday's falls.

"People still strive to go for quality stocks and stocks with strong yields," she said.

The positive closing defied the weakness in the US overnight where the Dow Jones industrial average lost 55.79 points to 10,755.12 and the broad-based Standard & Poor's 500 Index receded 1.53 points to 1255.84.

Stock Move Price AMP +0.030 7.480 ANZ Bank -0.130 22.900 BHPBilton +0.240 21.800 CBA -0.220 40.520 NAB -0.230 31.510 NewsCorp +0.550 22.000 Rio Tinto +0.450 63.550 TelstraCp - 3.820 WestpacBk +0.030 21.650

The banks finished the day weaker but had narrowed the deficit just before the close of trade.

ANZ, which had been as low as $22.70, finished 13 cents weaker at $22.90.

National Australia Bank hit a day low of $31.37 before closing at 23 cents lower at $31.51 while Commonwealth Bank lost 22 cents to $40.52.

Westpac bucked the trend with a three cent gain to $68.20.

Media stocks proved resilient with News Corp gaining 55 cents to $22.00 and its non-voting scrip up 35 cents at $20.89.

Fairfax put on six cents to $3.96 while Publishing & Broadcasting firmed two cents to $16.50.

Telstra, which today said it would merged its Hong Kong carrier CSL and with New World PCS, was steady at $3.82.

Optus parent Singapore Telecommunications firmed one cent to $2.01.

- AAP