Australian stocks: Close higher, buoyed by woolworths

The Australian stock market closed higher today as the market was buoyed by a strong profit result from retailer Woolworths and shrugged off initial caution arising from National Australia Bank's (NAB) trading halt as it dealt with some errors in its annual report.

ABN Amro Morgans senior client adviser Tony Dennis said the market was generally responding to good results in the reporting season and many companies were still yet to pay their dividends, which was attracting investors.

"NAB has kicked on, and the banks have risen in the afternoon to add that last little kick to the market, but the highlight today would be the outstanding result from Woolworths," Mr Dennis said.

At the 1615 AEDT close, the benchmark S&P/ASX200 was up 30.7 points to 4924.1 while the all ordinaries lifted 30.7 points to 4880.1.

On the Sydney Futures Exchange, the March share price index contract rose 26 points to 4920, on a volume of 15,111, according to preliminary calculations.

Woolworths rose 22 cents to a record close of A$17.92 after the supermarket chain unveiled a 22.1 percent lift in first half net profit to A$543.1 million, and reaffirmed its earnings guidance.

NAB gained 63 cents to A$36.55 after coming out from a trading halt this morning.

The bank identified a classification error in its fiscal 2005 annual report, which overstated the reported level of lending to the real estate/ construction sector.

NAB said later that the errors would not affect its net profit.

On Wall Street on Friday, blue-chip stocks ended slightly lower as a bomb attack at a large Saudi Arabian oil facility drove oil prices up more than $US2 barrel, renewing worries about inflation and lower corporate profits.

The Dow Jones industrial average was down 7.37 points at 11,061.85.

In the banking sector, the Commonwealth Bank gained 34 cents to A$44.50, Westpac improved 18 cents to A$23.73, but the ANZ retreated four cents to A$25.66.

Shares in Suncorp-Metway Ltd continued to slide after analysts expressed concerns about the quality of the bank and insurance company's half-yearly result. Suncorp shares dropped 65 cents to A$20.35.

Financial services firm Challenger Financial Services Group dipped eight cents to A$3.96 as it posted an increase in first half net profit led by gains in its wealth management and wholesale finance divisions.

In the resources sector, BHP Billiton strengthened 11 cents to A$24.66, Rio Tinto firmed 80 cents to A$73.00, and Alumina found four cents at A$7.13.

Oil and gas producer Woodside Petroleum stepped forward 31 cents to A$41.36, and Santos was 11 cents better off at A$11.71.

In the gold sector, Newmont rose 16 cents to A$7.80, Newcrest was 38 cents heavier at A$21.27, and Lihir nudged up one cent to A$2.18.

The price of gold at 1643 AEDT was A$US556.50 per fine ounce, up A$US4.85 on Friday's close.

Among media stocks, News Corp sagged five cents at A$23.27 while its non-voting stock reversed 11 cents to A$21.98.

Publishing and Broadcasting put on 36 cents to A$17.14, and Fairfax put on one cent at A$3.93.

Telco Telstra was four cents richer at A$3.91, and Optus-owner Singapore Telecommunications was up one cent at A$2.17.

Retailer Coles Myer shed three cents at A$9.70.

Among other stocks, building products firm James Hardie Industries NV lifted eight cents to A$8.73 after it reported a big jump in third quarter profits as it continues discussions with the tax office over its asbestos compensation deal.

Entertainment group Village Roadshow was steady at A$2.35 as the company posted a first half net loss despite blockbuster movies such as King Kong and Harry Potter.

Troubled wheat exporter AWB fell 16 cents to A$3.88 on fears its export monopoly had been damaged by the fresh agreement struck by the federal government with Iraq.

Transport group Toll Holdings lifted 25 cents to A$11.60 as it said it would present a new set of undertakings in another effort to get approval for its stalled A$4.6 billion hostile takeover bid for stevedore Patrick Corp. Patrick was up 23 cents to A$6.96.

Australia's biggest private hospital operator Ramsay Health Care was 65 cents higher at A$9.80 as it said Asia and the United Kingdom may provide growth opportunities in the future.

The top traded stock by volume was minerals explorer Peninsula Minerals, with 69.9 million shares worth A$2.1 million changing hands. Peninsula shares were 0.4 of a cent higher at three cents.

Preliminary national turnover was 1.25 billion shares worth A$4.30 billion, with 613 stocks up, 431 down and 331 unchanged.

- AAP