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MELBOURNE - The Australian share market finished the week stronger following a buying spree on Wall Street and better base metal prices.
At 1617 AEDT the benchmark S&P/ASX200 was up 61.3 points to 5658, while the broader All Ordinaries was up 55.6 points at 5723.9.
On the
Sydney Futures Exchange, the March share price index futures contract was up 20 points to 5604 points on a volume of 19,923 contracts.
CMC Markets senior dealer Matt Lewis said the market has stayed in positive territory after a strong start, despite the thin volume.
"We saw some trade flows on what were considered oversold stocks," Mr Lewis said.
There was a good volume of trade in the financial sector with Commonwealth Bank and National Australia Bank getting a lot of investors' attention, he said.
"Despite the banks being in the limelight after the interest rate increase this week, CBA and NAB found some buying support."
Commonwealth Bank closed $1.32 better at $50.14, NAB improved 63 cents to $33.43, Westpac added 35 cents to $24.97 and ANZ found 60 cents to $25.60
However, the big diversified miners were weaker as investors digested BHP Billiton's formal US$147.40 billion (A$164.79 billion) bid for rival Rio Tinto.
BHP Billiton closed 78 cents down at $36.14 and Rio shed $2.00 to $125.00.
The spot price of gold locally closed at US$909.60 per fine ounce, up US$4.10 on yesterday's close of US$905.50 per fine ounce.
The gold miners were mixed. Newcrest gained 70 cents to $35.70 and Lihir was 13 cents richer at $3.61.
Newmont dropped seven cents to $5.56 after it forecast an increase in the cost of the large Boddington operation in Western Australia.
In other market news, shares in RHG, formerly known as RAMS Home loan Group, soared almost 24 per cent, adding 5.5 cents to 28.5 cents.
RHG Ltd confirmed it has refinanced $5.25 billion in short-term debt, partly through selling $1 billion of its mortgages to National Australia Bank.
Shares in pay television provider Austar United Communications Ltd edged up one cent to $1.58 after it said sales of its new personal digital recorder had exceeded its expectations.
On Wall Street overnight stocks rose as relatively cheap valuations tempted investors back after a three-day losing streak that had pushed Nasdaq into an official bear market.
The Dow Jones industrial average was up 46.90 points, or 0.38 per cent, at 12,247.00. The Standard & Poor's 500 Index was up 10.46 points, or 0.79 per cent, at 1,336.91. The Nasdaq Composite Index was up 14.28 points, or 0.63 per cent, at 2,293.03.
Retail stocks mostly gained ground with Wesfarmers up $1.83 to $39.03 and Woolworths 69 cents higher at $28.99. However, David Jones dipped three cents to $4.17.
Media companies were mixed with Fairfax up six cents to $4.17 and Consolidated Media gaining three cents to $4.48.
News Corp slipped two cents lower to $22.98 although its non-voting scrip closed nine cents better to $22.35.
The telcos improved with Telstra adding four cents to $4.57 and its instalment receipts gaining four cents to $3.01 while rival Singapore Telecommunications found four cents to $2.99.
The most heavily traded stock was Empire Oil and Gas with 2.6 million shares changing hands worth $6.2 million. Its stock price was steady at 2.2 cents.
Overall market turnover was 1.4 billion shares worth $4.5 billion, with 698 stocks up, 496 down and 317 unchanged.
- AAP
