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SYDNEY- The Australian share market closed mildly higher with gains in the resources sector despite a sell off in metal prices after it was reported the Chinese economy grew by nine per cent in 2008.
At the 1615 AEDT close, the benchmark S&P/ASX200 index had gained 44 points,
or 1.28 per cent, to 3,486.8, and the broader All Ordinaries index rose 37.1 points, or 1.09 per cent, to 3,431.9.
At 1615 AEDT on the Sydney Futures Exchange, the March share price index contract was 22 points higher at 3450, on a volume of 28,095 contracts.
Macquarie Equities adviser Helen Spencer it was a flat day on the market and somewhat disappointing considering the strong lead from the US.
"We're fairly flat in the banking sector," Ms Spencer said.
"Oil prices being up overnight helped push up the likes of Woodside, which has been remaining om positive territory for most of the day.
"The Chinese numbers that came out today were pretty much in line with expectation and that's helped support the major miners, despite the very heavy sell off in metal prices overnight."
Among the major banks, National Australia Bank rose 50 cents to $18.11, Commonwealth Bank surrendered one cent to $25.60, ANZ retreated 17 cents to $13.00 and Westpac added 50 cents to $15.52.
In the resources sector, BHP Billiton lifted 48 cents to $29.14, while rival miner Rio Tinto increased $1.55, or 4.16 per cent, to $38.80.
In the energy sector, Santos fell 21 cents to $14.00, Oil Search sank six cents to $4.24 but Woodside added 35 cents to $34.76.
On Wall Street overnight, the Dow Jones industrial average settled up 279.01, or 3.51 per cent, to 8,228.1.
The Standard & Poor's 500 index advanced 35.02, or 4.35 per cent, to settle at 840.24, and the Nasdaq composite index rose 66.21, or 4.6 per cent, to 1,507.07 at settlement.
Making headlines this Thursday, Australia's biggest gold company, Newcrest Mining, cut its production forecast for 2008/09 after output dropped and mining costs surged in the second quarter.
Its shares dropped $1.14, or 3.45 per cent, to $31.90.
Lihir added two cents to $2.95 and Newmont gained nine cents to $6.04.
The spot price of gold was lower at 1638 AEDT, trading at US$852.30 an ounce, down US$0.70 on Wednesday's local close of US$853.
Diversified trader Wesfarmers, which owns Coles, has launched an equity raising to raise a minimum of $2.8 billion to repay debt.
Woolworths lifted 30 cents to $26.09 and David Jones was 10 cents, or four per cent, lower at $2.40.
Industrial property investor Goodman Group added four cents, or 5.37 per cent, to 78.5 cents after it said it would slash up to 175 positions.
Telstra is losing its chief operating officer, Greg Winn, who is returning to the United States to pursue "personal interests".
Telstra shares were two cents lower at $3.58.
Among media stocks, Fairfax Media lost four cents to $1.35 and Consolidated Media Holdings gave up two cents to $1.815.
News Corporation added 47 cents, or 3.82 per cent, to $12.78 and its non-voting scrip added 36 cents, or 3.18 per cent, to $11.68.
Qantas was steady at $2.45 while rival Virgin Blue fell half a cent to 34.5 cents.
Tanami Gold NL was the top traded stock by volume, with 55.21 million shares worth $2.14 million changing hands.
Tanami shares were half a cent, or 13.89 per cent higher, at 4.1 cents.
Preliminary market turnover reached 936.43 million shares, worth $3.05 billion, with 392 stocks up, 476 stocks down and 238 unchanged.
- AAP