Australian stocks: Market closes over 3pc up

SYDNEY - The Australian stock market closed more than three per cent stronger after Wall Street extended its rally for the third consecutive session.

At the 1615 AEDT close, the benchmark S&P/ASX200 index was up 109.7 points, or 3.39 per cent, at 3,345.2, while the broader All Ordinaries index added 104.3 points, or 3.27 per cent, to 3,294.7.

On the Sydney Futures Exchange, the March share price index futures contract was 91 points higher at 3,338 on a volume of 48,314 contracts.

CMC Markets senior dealer Matt Lewis said the Australian market rounded out the week strongly, gaining after strong leads from US and European markets overnight.

"The fact that our market was able to hold on to and extend early morning gains was a good sign for the market moving forward," he said.

Mr Lewis said the local financial sector gained ground after strong results from US banks.

"We have seen two of the major US banks announced that they have been profitable for the first two months of the year, which has been a surprise turnaround.

"This has given a boost to our financial sector, with the big four banks driving the overall index higher.

"Despite traders' sentiment remaining one of caution, particularly after the unemployment data this week, there has been some optimism creeping back into our market."

The local miners were higher, with BHP Billiton adding $1.31, or 4.32 per cent, to $31.66, and Rio Tinto rising $1.85, or 3.69 per cent, to $52.02.

In the US overnight, Wall Street extended its rally into a third session as investors took in their stride a cut in General Electric Co's credit rating.

The Dow Jones industrial average rose 239.66 points, or 3.46 per cent, to 7,170.06.

The banking and financial sectors were considerably higher.

National Australia Bank was up $1.05, or 6.28 per cent, at $17.78, Commonwealth Bank added $1.58, or 5.51 per cent, to $30.25 and Westpac added 35 cents to $16.95.

ANZ said it would move 500 back-office worker positions to India.

ANZ shares were up 63 cents, or 4.9 per cent, at $13.49.

QBE Insurance gained 97 cents, or 6.1 per cent, to $16.87 and Suncorp-Metway rose 48 cents, or 10.04 per cent, to $5.26.

The property sector was stronger, with Stockland up 19 cents, or 7.06 per cent, to $2.88, and Mirvac adding 10.5 cents, or 15.33 per cent, to 79 cents.

Budget airline Virgin Blue said it could not explain the recent fall in its share price other than reasons such as market volatility and the global financial crisis.

Virgin Blue shares were up one cent at 17.5 cents.

Rival Qantas was eight cents higher at $1.60.

Gaming firm Crown said its agreement to acquire the Cannery casino group in the US had been terminated, but has entered into a new deal with the vendors.

Crown shares added 70 cents, or 13.46 per cent, to $5.90.

At 1627 AEDT, the spot price of gold in Sydney was US$923.70 per fine ounce, up US$10.20 on Thursday's local close of US$913.50.

Lihir Gold added four cents to $3.03, Newcrest Mining rose 39 cents to $32.13 and Newmont Mining gained 18 cents to $5.88.

The oil sector was mixed, with Santos down 20 cents to $15.80, Woodside Petroleum up $1.80, or five per cent, at $37.78 and Oil Search nine cents higher at $5.14.

The top traded stock by volume was Admiralty Resources, with 91.07 million shares changing hands worth $1.95 million.

Its shares were up 0.3 cent, or 17.65 per cent, at two cents.

Preliminary national turnover was 1.62 billion shares worth $4.23 billion, with 636 stocks up, 258 down and 276 unchanged.

- AAP