KEY POINTS:
PERTH - The Australian share market was driven higher by resources stocks on the back of firmer commodity prices.
The benchmark S&P/ASX200 index was up 38.4 points, or 1.08 per cent, at 3,589.3, while the broader All Ordinaries index advanced 36.1 points, or 1.03 per cent, to 3,531
after a positive lead from Wall Street on Friday.
On the Sydney Futures Exchange at 1616 AEDT, the March share price index contract was 33 points higher at 3,557 on a volume of 18,607 contracts.
"The market held on to some quite good gains earlier in the session," CommSec market analyst Juliette Saly said.
"Trading volumes were thin."
Ms Saly said the market was anxiously awaiting BHP Billiton's December quarter production report on Wednesday amid speculation the mining giant will be forced to close its Ravensthorpe nickel laterite mine in Western Australia due to low prices for the metal.
"There has been some speculation that BHP's quarterly production figures could fall under quite a bit of pressure due to slowing demand (for its products) and a big drop off in commodity prices," she said.
"But it's continuing to hold up well."
BHP Billiton was up 50 cents, or 1.67 per cent, at $30.38 while its debt-laden rival Rio Tinto jumped $2.20, or 5.74 per cent, to $40.55.
"Rio was once again the stand-out," Ms Saly said.
"It has been under a lot of selling pressure heading into the end of 2008 but we're starting to see a bit of a recovery in Rio shares."
Ms Saly said the local market was expected to be flat on Tuesday, with US markets closed overnight for the Martin Luther King holiday.
"We'll be looking for a pick-up on Wednesday ... as we see Barack Obama inaugurated as the 44th president of the US."
The energy sector was stronger.
Woodside gained 76 cents, or 2.27 per cent, to $34.29, Santos rose 65 cents, or 4.62 per cent, to $14.73 and Oil Search put on eight cents, or 1.81 per cent, to $4.51.
Gold stocks were mostly higher.
Newcrest leapt $2.32, or 8.01 per cent, to $31.27 and Lihir Gold jumped 18 cents, or 6.72 per cent, to $2.86 but Newmont fell 11 cents, or 1.97 per cent, to $5.46.
At 1618 AEDT, the spot price of gold in Sydney was US$838.00 per fine ounce, up US$17.20 on Friday's close of US$820.80.
Ms Saly said ANZ was the stand-out performer in the banking sector, up 13 cents, or 0.91 per cent, to $14.43.
National Australia Bank was nine cents higher at $19.44 while Westpac, which is undertaking a capital raising this week at about $16.00, dropped two cents to $16.09.
The Commonwealth Bank has split its corporate division from its institutional banking unit to service customers and manage its capital better.
"We also heard of management changes," Ms Saly said.
She said Commonwealth Bank shares were under pressure for most of morning but closed eight cents, or 0.29 per cent, higher at $27.43.
Making headlines on Monday, Djerriwarrh Investments posted a 47 per cent half year profit plunge to $29.7 million after incurring losses of $15.1 million from offloaded securities.
Shares in the listed investment company were up six cents, or 1.68 per cent, at $3.64.
Retailers were mixed. Coles owner Wesfarmers also helped lift the bourse on Monday, strengthening 97 cents, or 5.98 per cent, to $17.20, amid speculation it was close to refinancing debt of more than $7 billion that is due in the next two years.
Rival Woolworths slid 11 cents, or 0.42 per cent, to $26.21, David Jones inched two cents lower to $2.69 and Harvey Norman was steady at $2.35.
Among media stocks, Fairfax was up 4.5 cents, or 3.15 per cent, at $1.475, Consolidated Media put on 5.5 cents, or 2.85 per cent, to $1.985, News Corp retreated 60 cents, or 4.58 per cent, to $12.50 and its non-voting scrip was down 62 cents, or 5.07 per cent, at $11.60.
Ms Saly said CSL was a top performing defensive stock, up 29 cents, or 0.87 per cent, at $33.70.
Gold miner Tanami Gold NL was the top traded stock by volume, with 41.32 million shares worth $1.42 million changing hands.
Tanami's shares gained 0.4 cents, or 12.5 per cent, to 3.6 cents.
Preliminary turnover reached 832.62 million shares worth $2.22 billion, with 399 stocks up, 444 down and 275 unchanged.
- AAP