Australian stocks: Market higher on US lead

MELBOURNE - The Australian share market ended the financial year by closing higher on Tuesday, driven up by the energy and retail sectors and a positive lead from United States markets.

At the 1615 AEST close, the benchmark S&P/ASX200 index had risen 68 points, or 1.75 per cent, to 3,954.9 points, while the broader All Ordinaries index advanced 65.1 points, or 1.68 per cent, to 3,947.8 points.

On the Sydney Futures Exchange, the September share price index contract was 63 points higher at 3,915 on a volume of 25,087 contracts, according to preliminary calculations.

"It was the energy sector that drove (the market) today and the retail space as well - energy sector on the back of a higher oil price and the retail space on the back of David Jones which gave the market a big surprise this morning," CMC Markets market analyst David Taylor said.

Upmarket department store chain David Jones boosted its profit guidance following recent strong sales and said the economic downturn may be waning.

Shares in David Jones surged 42 cents, or 10.17 per cent, to $4.55.

Mr Taylor said investors were in a positive mood, but trading volumes were light.

Mr Taylor said investors were sitting on the sidelines as they squared off their books at the end of the financial year and headed into the full year reporting season.

United States markets would be closed on Friday for the Independence Day holiday.

"So I think for the moment we're looking for a few leads, but they're pretty light on ground at the moment," Mr Taylor said.

Among the major miners, global miner BHP Billiton added 82 cents to $34.72 and Rio Tinto gained $1.93 to $52.20.

OZ Minerals was up two cents to 92 cents as it said it would focus on expanding its Prominent Hill mine, after announcing it had completed the sale of its Martabe gold and silver project in Indonesia.

Kerry Stokes-controlled junior iron ore explorer Iron Ore Holdings slipped two cents to 82 cents despite lifting the mineral resource estimate for its Iron Valley iron ore project in Western Australia by 50 per cent.

Oil and gas producer Woodside Petroleum firmed 68 cents to $43.21 and Santos stepped forward 24 cents to $14.64.

In the banking sector, Commonwealth Bank picked up eight cents at $39.00, ANZ strengthened 28 cents to $16.49, National Australia Bank added seven cents to $22.44 and Westpac ascended 47 cents to $20.25.

On Wall Street overnight, the Dow Jones Industrial Average index climbed 90.99 points, or 1.08 per cent, to 8,529.38 points.

Among gold stocks, Newcrest gained 56 cents to $30.51, Newmont nudged up one cent to $5.20 and Lihir found two cents at $2.95.

The spot price of gold in Sydney at 1622 AEST was US$944.60 per fine ounce, up US$6.50 on Monday's close of US$938.10.

In the media sector, News Corp improved 42 cents to $13.37 and its non-voting scrip put on 45 cents at $11.61.

Fairfax was up 1.5 cents at $1.22 and Consolidated Media was steady at $2.27.

In the retail sector, Wesfarmers, which owns Coles, surged 67 cents to $22.65 and Woolworths gained 68 cents to $26.36.

Telco Telstra rose five cents to $3.39 and Optus-owner Singapore Telecommunications dumped three cents at $2.54.

Among other stocks, Macquarie Communications Infrastructure Group was one cent richer at $2.97 as security holders voted in favour of the Canada Pension Plan Investment Board's $2.2 billion takeover bid.

Rural services company Elders was up 1.5 cents at 28.5 cents after it said it completed agreements with its lenders to extend short-dated debt for three months, giving it time to refinance the facilities.

Ports and rail operator Asciano Group found 2.5 cents at $1.335 after it signed a 10-year deal to haul coal for Anglo Coal in Queensland, starting in the 2009/10 financial year.

The top-traded stock by volume was Macquarie Office Trust, with 97.48 million shares worth $20.55 million changing hands.

Its shares were down 0.5 cents, or 2.33 per cent, at 21 cents.

Preliminary market turnover was 2.26 billion shares worth $5.08 billion, with 635 stocks up, 563 down and 376 unchanged.

- AAP