Aussie stocks make slight gain

SYDNEY- The Australian share market has closed marginally higher, with strength in the energy sector and positive company earnings reports offset by lower property and healthcare stocks.

The benchmark S&P/ASX200 index closed up 3.7 points, or 0.08 per cent, at 4,377.5 points, while the broader All Ordinaries index gained 3.8 points, or 0.09 per cent, to 4,391.3 points.

At 1615 AEST on the Sydney Futures Exchange the September share price index contract was four points higher at 4,338 points on a volume of 28,824 contracts.

IG Markets analyst Cameron Peacock said the market was surprisingly flat given the strength in Asian markets on Thursday.

Energy stocks were a key driver of growth, he said.

"Strong leads from Wall Street and the overnight surge in crude has seen energy outperform today, with the industrial and materials sector also broadly stronger," Mr Peacock said.

"The brunt of the days selling has been in property trusts and healthcare."

Woodside shares gained $3.25, or 7.34 per cent, to $47.53 and Oil Search rose 14 cents, or 2.52 per cent, to $5.70.

Santos shares dropped six cents to $14.65 as it maintained its production guidance for calendar 2009 and attributed a sharp drop in first half earnings to weaker energy prices.

BHP Billiton gained 42 cents to $37.13 while Rio Tinto, which reported a 64 per cent decline in first half earnings just after the 1615 AEST market close, lost 17 cents to $58.03.

The financials sector was lower, aside from superannuation provider AMP and insurer QBE.

AMP shares gained 17 cents to $6.02 after it beat market expectations with a 16 per cent fall in first half underlying profit and set its sights on acquisitions.

QBE shares added $1.32, or 6.36 per cent, to $22.06 after the company increased first half profit by 19 per cent.

Among the major banks, National Australia Bank was up five cents at $26.86, ANZ fell 18 cents to $19.62, Westpac dropped 23 cents to $23.31 and Commonwealth Bank gained four cents at $44.98.

Shares in Coles owner Wesfarmers lost $1.10, or 4.15 per cent, to $25.40 after the group reported a 44 per cent rise in annual profit.

"The results certainly beat the street but a meaningful turnaround in Coles still appears some way off," Mr Peacock said.

Woolworths gained 42 cents to $27.61.

James Hardie shares dropped 15 cents, or 2.19 per cent, $6.69 after the company was fined $80,000 for its part in a civil case brought against it and former board members by the Australian Securities and Investments Commission.

Financial markets exchange operator ASX Ltd reported a 14.3 per cent decline in annual profit after a difficult year for operators across the world.

ASX shares lost 88 cents, or 2.44 per cent, to $35.24.

At 1626 AEST the spot price of gold in Sydney was $944.50 per fine ounce, up US$7.40 on Tuesday's close of US$937.10.

Among the gold miners, Lihir Gold lost two cents to $2.44 and Newcrest gained 27 cents to $29.07.

The most-traded stock by volume was Flinders Mines with 105.4 million shares worth $9.8 million changing hands.

Flinders Mines shares lost 0.9 cents, or 9.47 per cent, to 8.6 cents.

Preliminary market turnover was 2.6 billion shares worth $5.6 billion, with 560 stocks up, 514 down and 322 unchanged.

- AAP