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SYDNEY - The Australian share market closed one per cent higher after strong profit results from the resource sector cheered the local market.
At the 1615 AEDT close the benchmark S&P/ASX200 was up 35.7 points, or 1.05 per cent, at 3,448.9, while the broader All Ordinaries added 31.1
points, or 0.92 per cent, to 3,398.
On the Sydney Futures Exchange at 1619 AEDT, the March share price index contract was 32 points higher at 3,409 on a volume of 30,310 contracts.
CMC Markets senior dealer Dominic Vaughan said the Australian market gained ground on Thursday despite the absence of any convincing leads from Wall Street overnight.
He said the local market rose on the back of better than expected profit results from companies such as Santos Ltd and Lihir Gold Ltd.
"It's a case of better than expected numbers," Mr Vaughan said.
"Investors liked what they saw with the profit results and it gave the market some much needed boost."
Santos closed 18 cents higher at $14.41 after it delivered a significant increase in profit and said it was well placed amid the global economic crisis.
Lihir Gold lost three cents to $3.53 despite a solid 2008 net profit and saying it expects further improvement in 2009.
Mr Vaughan said the financial sector was back in favour.
"The finance sector seems to be good value for investors at the moment and despite some reports of increasing provision for bad debts, I don't think that's something to be fearful of."
Among the major banks, Westpac added 52 cents, to $17.00, ANZ gained 20 cents to $12.60, Commonwealth Bank added 69 cents to $29.85 and National Australia Bank added 26 cents to $18.40.
In the resources sector, Rio Tinto added $1.23 to $51.78, while BHP Billiton dropped 15 cents to $30.16.
The spot price of gold in Sydney was trading at US$978.10 per fine ounce, up US$4.80 on Wednesday's local close of US$973.30.
Newcrest Mining lost 40 cents to $35.90 and Newmont fell four cents to $6.59.
The major retailers were stronger with Woolworths up five cents to $27.50, David Jones adding six cents to $2.41 and Wesfarmers adding 79 cents to $17.09.
The media sector was mostly weaker. Fairfax Media lost 4.5 cents, or 4.37 per cent, to 98.5 cents, News Corporation fell five cents to $10.50 and its non-voting scrip also lost five cents to $9.51.
Consolidated Media added seven cents to $1.89.
Ten Network plunged 13 cents, or 13.98 per cent, to 80 cents on its failed $90 million capital raising. The raising had a floor price of 75 cents per share.
Making news, AMP says net inflows for 2009 so far have so far been better than last year, as the company conserves cash to take advantage of the eventual recovery in markets.
AMP added 13 cents to $5.05 despite a 41 per cent fall in calendar 2008 net profit .
Brewer Lion Nathan reaffirmed its guidance for fiscal 2009 and said the performance of its core beer business was "very encouraging" in the first quarter.
Lion Nathan added 13 cents to $8.92.
In the aviation sector, Qantas added 2.5 cents to $1.75, while Virgin Blue added one cent to 24.5 cents.
OZ Minerals was the top traded stock by volume, with 81.03 million shares changing hands for $52.96 million, and pushing the share price up two cents, or 3.17 per cent, to 65 cents.
Preliminary total market turnover reached 1.29 billion shares worth $3.84 billion, with 448 stocks up, 415 down and 276 unchanged.
- AAP
