Aussie stocks close up over 1pc

PERTH - The Australian share market closed firmly in positive territory after strong commodities prices drove gains among resource stocks.

The benchmark S&P/ASX200 index was up 53.4 points, or 1.11 per cent, at 4,846.2 points, while the broader All Ordinaries index climbed 51 points, or 1.06 per cent, to 4,852.8 points.

On the Sydney Futures Exchange at 1616 AEDT, the December share price index contract was 46 points higher at 4,855 on a volume of 18,820 contracts.

CMC Markets analyst David Taylor said energy and materials stocks had outperformed the rest of the market on Tuesday.

"When there is a rally, we've seen the money flow into resources, which is typical of a market that is looking to move higher," he said.

BHP Billiton was up 83 cents, or 2.12 per cent, at $39.91 and Rio Tinto jumped $2.15, or 3.33 per cent, to $66.80.

The energy sector was largely higher.

Woodside was up seven cents at $52.69, Santos lifted 39 cents to $15.64 and Origin gained 19 cents to $16.44.

However, Oil Search was down 49 cents, or 7.26 per cent, at $6.26 after completing an $895 million institutional placement at $5.90.

Gold stocks were largely stronger as the price of the precious metal approached last week's record highs. At 1617 AEDT, the spot price in Sydney was US$1,066.20, up US$14.07 on Monday's close of US$1,052.13.

"I'm a little bit nervous about the US dollar," Mr Taylor said.

"All it is going to take is a decent investment from the US Treasury Department or the Federal Reserve and you'll get a rally in the US dollar and gold will come tumbling down."

Newcrest rose 16 cents to $36.34, Newmont was two cents weaker at $5.04 and Lihir Gold was four cents higher at $3.23.

Among banking stocks, National Australia Bank was up 42 cents at $31.30, Commonwealth Bank advanced 39 cents to $54.90, Westpac was 18 cents higher at $26.48 and ANZ appreciated six cents to $23.79.

Retail stocks were mixed. Coles owner Wesfarmers rose 21 cents to $26.25, Harvey Norman gave up six cents to $4.33 and David Jones retreated seven cents to $5.68.

Woolworths was down 24 cents at $30.28 after it said it had increased sales by 4.2 per cent in the first quarter of 2009/10 and forecast full year sales would grow.

In other headlines on Tuesday, clothing manufacturer Pacific Brands has defended its decision to cut more than 1,200 jobs and praised the performance of its chief executive Sue Morphet.

Shares in Pacific Brands slumped 7.5 cents, or 5.12 per cent, to $1.39.

Media stocks were stronger. News Corp was 23 cents higher at $16.18, its non-voting scrip was up 20 cents at $13.89, Fairfax put on four cents to $1.74 and Consolidated Media was steady at $3.05.

The top-traded stock by volume was Elders, with 246.57 million shares worth $43.23 million changing hands.

Its shares were up half a cent, or 2.78 per cent, at 18.5 cents.

Preliminary market turnover was 3.22 billion shares worth $5.76 billion, with 731 stocks up, 455 down and 335 unchanged.

- AAP