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MELBOURNE - The Australian share market closed just over one per cent higher following strong gains from the resources sector after commodity prices rose from Friday's levels.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was 38.7 points, or 1.12 per cent, higher at 3508.6, while the
broader All Ordinaries gained 38.3 points, or 1.12 per cent, to 3445.8.
At 1615 AEDT on the Sydney Futures Exchange, the March share price index contract was 56 points higher at 3471, on a volume of 19,209 contracts.
"The market has been pushed higher by the resources and energy sectors, particularly BHP and Rio, with commodity prices up overnight," CMC Markets senior dealer Dominic Vaughan told AAP.
"We had a very good lead out of Wall Street on anticipation that the (US) stimulus package might go through in the form that may help some of the banks."
The Dow Jones Industrial Average gained 217.52 points, or 2.7 per cent, to close at 8,280.59 on Friday.
Locally, BHP Billiton put on $1.11, or 3.44 per cent, to $33.34, while rival Rio Tinto added $2.65, or 5.67 per cent, to $49.40.
Rio Tinto chairman-elect Jim Leng has quit less than a month after being appointed to the board as the company attempts to pay down over US$38 billion (A$56.21 billion) in debt.
The banking sector was stronger, with ANZ adding 16 cents to $12.46, National Australia Bank picking up 40 cents to $18.90, Commonwealth Bank gaining 24 cents to $29.94 and Westpac putting on two cents to $16.52.
Hutchison Telecommunications (Aust) says a merger with Vodafone Australia will result in redundancies as the pair seek to compete against the big guns, Telstra and Optus.
Shares in Hutchison gained one cent 12.5 cents.
PMP dropped three cents to 35 cents, with the company to cut 76 jobs as it closes print sites in Queensland and South Australia to boost its underperforming print business.
Transfield Services Infrastructure Fund shed nine cents to $1.02 after the company delivered a significant fall in profit for the first half of the 2009 financial year and cut its distributions amid global economic woes.
The retailers were mixed, with David Jones adding eight cents to $2.22, Wesfarmers gaining six cents to $15.56, Woolworths falling 32 cents to $27.63 and Harvey Norman steady at $1.98.
Beverages firm Lion Nathan put on 16 cents to $8.34 after the company formally withdrew its proposal to merge with Coca-Cola Amatil.
Medical centres and diagnostics provider Primary Health Care gained 13 cents to $4.80 after the group confirmed its full year earnings guidance, despite reporting a 44 per cent drop in first half profit mainly due to the cost of acquiring Symbion Health.
The media sector was stronger, with Consolidated Media Holdings putting on 4.5 cents to $1.84, Fairfax gaining three cents to $1.185, News Corp adding 58 cents to $11.25 and its non-voting shares picking up 50 cents to $10.30.
The energy sector was stronger, with Santos adding 20 cents to $14.14, Oil Search putting on 23 cents to $4.55 and Woodside putting on one cent to $32.01.
BG Group Plc has launched a $796 million takeover bid for Pure Energy Resources Ltd, trumping an existing offer from gas producer Arrow Energy Ltd.
Pure Energy shares were in a trading halt and last traded at $5.28, while Arrow gained 26 cents to $2.48.
The spot price of gold was trading at US$904.80 an ounce by 1630 AEDT, down on Friday's local close of US$914.30 an ounce.
The gold miners were mixed, with Newcrest adding 32 cents to $32.20, Newmont dropping 11 cents to $6.15 and Lihir steady $3.17.
GPT Group was the most traded stock by volume with 32.1 million shares changing hands, collectively worth $19.7 million.
Preliminary market turnover reached 1.07 billion, worth a total value of $3.4 billion, with 477 stocks up, 387 down and 288 unchanged.
- AAP