Aussie stocks: Gains posted

The Australian share market reversed early resource-led losses to close in positive territory after strong gains in two major bank stocks.

The benchmark S&P/ASX 200 index was up 11.1 points, or 0.26 per cent, at 4,343.1 points, while the broader All Ordinaries index had risen 11.5 points, or 0.27 per cent, to 4,345.9 points.

On the Sydney Futures Exchange at 1615 AEST, the September share price index futures contract was 10 points lower at 4,300 points on a volume of 32,042 contracts.

Ausbil Dexia chief executive Paul Xiradis said the local bourse had a quite strong session considering negative offshore leads.

"The banking sector is performing pretty well, in particular Commonwealth Bank following the announcement of its annual result, which was better than expected," Mr Xiradis said.

"They are really leading the charge among the banks, and also Westpac is up."

Commonwealth Bank posted a one per cent dip in annual profit and said the outlook remains challenging, with credit growth expected to slow as upward pressure on interest rates increases.

Commonwealth Bank shares were up $1.39, or 3.16 per cent, at $45.32.

Westpac gained 31 cents, or 1.35 per cent, to $23.33, ANZ shed nine cents to $19.60 and National Australia Bank was 17 cents weaker at $25.85.

Mr Xiradis said profit taking and a lower oil price overnight had weighed on the resources sector.

Rio Tinto was up 10 cents at $58.00 while fellow mining giant BHP Billiton appreciated 39 cents to $37.99.

Late on Wednesday, BHP Billiton reported a 61.8 per cent drop in full year earnings to US$5.877 billion (A$7.09 billion) following a drop in commodity prices.

The world's largest miner says it expects commodity demand to pick-up although uncertainty about global economic growth remains.

Securities in Stockland eased four cents to $3.37. The diversified property giant said the worst of the downturn was over, after it posted an annual net loss of almost $2 billion on writedowns.

Energy stocks were weaker. Woodside Petroleum had lost 42 cents to $43.55, Santos was down 12 cents at $14.38 and Oil Search dipped two cents to $5.39.

The spot price of gold in Sydney was US$944.00 per fine ounce, down US$4.73 on Tuesday's close of US$948.73.

Gold mining stocks were mixed. Lihir Gold inched two cents higher to $2.64, Newcrest was down five cents at $29.54 and Newmont slipped three cents to $4.85.

Among retail stocks, Coles owner Wesfarmers put on 40 cents to $25.70, Woolworths had given up nine cents to $27.00, David Jones was nine cents lower at $4.83 and JB Hi-Fi rose 75 cents to a record close at $18.05.

Media stocks were mixed. News Corp was down 51 cents at $15.29, its non-voting scrip was 49 cents weaker at $13.12, Fairfax had inched one cent lower to $1.52 and Consolidated Media was unchanged at $2.85.

The most-traded stock by volume was iron ore and diamond explorer Flinders Mines, with 209.05 million shares worth $17.16 million changing hands.

Flinders Mines shares were up one cent, or 13.7 per cent, at 8.3 cents.

Preliminary market turnover was 2.67 billion shares worth $4.61 billion, with 502 stocks up, 531 down and 348 unchanged.

- AAP