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PERTH - The Australian share market has closed firmly in the black, driven by stronger resource stocks following commodity price rises over the weekend.
The benchmark S&P/ASX200 index was up 81 points, or 2.31 per cent at 3,591.4, while the broader All Ordinaries index had risen 83.2 points,
or 2.41 per cent, to 3,535.7.
On the Sydney Futures Exchange at 1615 AEDT, the December share price index contract was 51 points higher at 3,588 on a volume of 68,642 contracts.
IG Markets institutional dealer Chris Weston said positive sentiment surrounding the proposed bailout of US car makers helped to push energy stocks higher.
News that liquefied natural gas producers had won emissions trading concessions from the Australian government helped to drive the resources sector higher, he also said.
"Under the scheme, the producers potentially could get free permits, ... (the uncertainty) had previously caused companies to halt investment in new projects," Mr Weston said.
"That may reduce the cost to their business when carbon trading becomes standard," Mr Weston said.
Woodside Petroleum was up $2.43, or 7.35 per cent, at $35.49, Santos appreciated 53 cents, or 3.66 per cent, to $15.00 and Oil Search gained 28 cents, or 6.11 per cent, to $4.86.
Among the mining giants, Rio Tinto jumped $3.69, or 10.19 per cent, to $39.90 and BHP Billiton leapt $2.08, or 7.22 per cent, to $30.90.
"Rio Tinto brushed off reports that it is in talks to raise US$9 billion (A$13.4 billion) in an equity raising exercise in the first half of 2009," Mr Weston said.
He said BHP, which is in a strategic stage in contract negotiations with Chinese steel mills, followed Rio higher.
The spot price of gold in Sydney was US$831.70 per fine ounce at 1621 AEDT, up US$18.95 on Friday's close of US$812.75.
Gold stocks were stronger. Newcrest was $1.49 to $29.60 and Newmont up 27 cents to $5.32, while Lihir Gold gained 21 cents, or 8.57 per cent, to $2.66.
The banks were mixed. Westpac was up 40 cents at $16.43, ANZ rose 44 cents to $15.00, Commonwealth Bank of Australia dropped 10 cents to $28.05 and National Australia Bank (NAB) slipped nine cents to $19.01.
ANZ, NAB and Commonwealth Bank all said they had no involvement with a collapsed pyramid investment scheme operated by US investment broker Bernard Madoff.
Westpac declined to comment.
Shares in Telstra fell to a two-year low after the telecommunications provider was dropped from the bidding process to build a national broadband network.
Telstra shares plunged 48 cents, or 11.62 per cent, to $3.65 while the owner of rival Optus, Singapore Telecommunications, inched one cent higher to $2.68.
Optus said it was committed to its bid to build the broadband network.
Takeover target Perilya advised shareholders to reject a hostile $29.7 million all-scrip bid by fellow lead and zinc miner CBH Resources.
Shares in Perilya were up four cents, or 25.81 per cent, at 19.5 cents while CBH's shares were up 0.1 of a cent, or 2.7 per cent, at 3.8 cents.
Among the retailers, Coles owner Wesfarmers was up 88 cents, or 5.74 per cent, to $16.20 while rival Woolworths had added 31 cents, or 1.24 per cent, to $25.31.
Newspaper group Fairfax gained two cents to $1.50 and News Corporation appreciated 22 cents to $12.92 while its non-voting scrip advanced 13 cents to $12.22.
Telstra was the most traded stock, with 147.82 million shares changing hands worth $562.95 million.
Preliminary turnover reached 1.29 billion shares, valued at $3.83 billion, with 527 stocks up, 372 down and 282 unchanged.
- AAP
