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SYDNEY - The Australian share market ended on Monday in positive territory, with weakness in the financials offset by gains in the materials and energy sectors.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was up 8.6 points, or 0.25 per cent, at 3425.1 while the broader
All Ordinaries had lifted 1.9 points, or 0.06 per cent, to 3388.8.
On the Sydney Futures Exchange, the December share price index futures contract was up 24 points at 3456 points on volume of 35,370 contracts.
IG Markets research analyst Ben Potter said the local market was expected to post gains after Wall Street ended last week with a strong rally.
Mr Potter said senitment toward local financial sector had been dented by troubled Babcock & Brown (B&B) and Citigroup in the US.
"Citigroup is hanging over the financials, in addition to the B&B matter."
"It looks definitely like it was the materials sector that was putting in most of the gains."
Investment manager B&B has extended a share suspension, as it tries to resolve a dispute will a bank about a deposit release. B&B shares last traded at 25 cents.
In the US, the US government was weighing a plan on Sunday to rescue Citigroup, whose stock has been hammered on worries about its financial health.
In the local financial sector, Commonwealth Bank dropped 73 cents to $30.22, National Australia Bank shed 20 cents to $18.80, ANZ was down 46 cents to $12.90, while Westpac was up 15 cents to $16.50.
Suncorp-Metway shares fell 21 cents, or 3.04 per cent, to $6.70 despite raising its full-year bank profit forecast as traders focussed on insurance claims related to recent storms in Queensland.
Resources giant BHP Billiton was up $1.48, or 6.76 per cent, at $23.38, while and Rio Tinto fell 21 cents to $59.80.
Woodside Petroleum added $1.07, or 3.69 per cent, to $30.07, Santos rose 45 cents, or 3.59 per cent, to $13.00 and Oil Search gained 14 cents, or 3.23 per cent, to $4.47.
At 1636 AEDT, spot gold in Sydney was trading at US$791.75 an ounce, up US$42.30 on Friday's Sydney close of US$749.45.
Gold miners posted some of the largest gains of the day as a result.
Lihir Gold soared 33 cents, or 18.33 per cent, to $2.13, Newmont added 68 cents, or 17.89 per cent, to $4.48, and Newcrest gained $2.14, or 9.97 per cent, to $23.60.
In media, Fairfax Media fell seven cents, or five per cent, to $1.33, but News Corp picked up 52 cents, or 5.22 per cent, to $10.49 and its non-voting scrip rose 62 cents, or 6.54 per cent, to $10.10.
Seven was two cents lower at $5.08 and Ten fell four cents to $1.01.
Telstra was five cents higher at $4.03, while its rival Singapore Telecommunications gained three cents to $2.55.
Major retail stocks mostly were weaker.
Woolworths was down 55 cents, or 2.15 per cent, at $25.00, Coles owner Wesfarmers decreased one cent to $19.00, while David Jones added four cents to $2.52 and Harvey Normal lifted 14 cents to $2.44.
Shares in Australian Wealth Management (AWM) jumped 13 cents, or 17.11 per cent, to 89 cents after the wealth manager agreed to merge with IOOF Holdings and form a $700 million combined group.
IOOF fell nine cents, or 2.65 per cent, to $3.30.
Agribusiness Ruralco Holdings says financial market turmoil has not impacted on its customers and is providing a suite of acquisition opportunities for the group.
Ruralco was steady at $3.24.
OZ Minerals non-executive director Owen Hegarty has been forced to sell a third of his shares in the company after receiving a margin call.
OZ Minerals fell 7.5 cents, or 12.61 per cent, to 52 cents.
OZ Minerals was the most traded stock with 63.33 million units traded for a total of $35.29 million.
Preliminary market turnover was 1.18 billion shares, valued at $3.53 billion, with 484 stocks up, 452 down and 264 unchanged.
- AAP