Australian stocks: Markets end up as resources fly

SYDNEY - The Australian sharemarket ended up as resources stocks flew higher, tracking strong gains in the US.

The two key indexes finished above the 4,000 mark, having made reasonable week-on-week gains.

"The market around these levels is showing reasonable value," said ABN AMRO Morgans adviser Tony Russell.

"There was renewed optimism in the US and we took our lead from that and the major resources stocks are doing well."

Mr Russell said profit downgrades this week by mid-cap companies like PMP Communications, Millers Retail and Pacifica Group had taken some of the edge off the market, but the overall performance was good.

At 4.10pm AEST the benchmark S&P/ASX200 was up 20.2 points to 4034.1 while the all ordinaries gained 21 to 4009.6.

Over the week, the S&P/ASX 200 gained 19.8 points and the all ordinaries 16.4 points.

On the Sydney Futures Exchange the June share price contract was up 26 points to 4046 on volume of 16,525.

CMC Group head trader Brian Griffin said large cap companies like BHP Billiton, Rio Tinto, Woodside Petroleum and Commonwealth Bank all enjoyed big moves today.

"I guess if there was a theme it was buy quality first line names like BHP Billiton and Commonwealth Bank of Australia and cut positions on second line names," he said.

Mr Griffin said the market would next week be looking for the S&P/ASX200 to consolidate around the 4,000 level.

BHP Billiton put on 12 cents to A$17.05, Rio Tinto added four cents to A$43.64 and BHP Billiton takeover target WMC Resources gained two cents to A$7.97.

Oil stocks Woodside rose 45 cents to A$24.50 and Santos gathered 10 cents to A$9.15.

The banking sector, which is awaiting the start of the bank reporting season next week, was mixed.

Commonwealth Bank rose 54 cents to A$36.28 and Westpac Bank grew four cents to A$18.57 but National Bank slipped eight cents to A$29.03 and ANZ lost 12 cents to A$20.68.

The big news of the day was Foster's Group increasing its bid for Southcorp to A$4.26 a share from A$4.14.

Southcorp jumped five cents to A$4.23 and Fosters fell 13 cents to A$5.29.

Automotive parts maker Pacifica fell 47 cents to A$1.55 after its profit downgrade today.

PMP lost half a cent to A$1.40 after losing 45.5 cents yesterday and Miller's Retail shed one cent to 86 cents.

Elsewhere in the retail sector, Coles Myer fell four cents to A$8.74, Woolworths improved nine cents to A$15.32 and David Jones rose one cent A$1.82.

Telstra continued to slip, losing three cents to A$4.86.

Optus parent Singapore Telecommunication was unchanged at A$2.01.

New Corp gained 20 cents to A$21.60 while its non voting scrip picked up 27 cents to A$20.77.

Publishing & Broadcasting rose six cents to A$14.48 and John Fairfax lost one cent to A$3.93.

At 4.45pm AEST the spot price of gold in Sydney was US$432.85, up from the previous close of US$434.125.

Newcrest rose 29 cents to A$15.80, Newmont fell two cents to A$5.28 and Lihir rose four cents to A$1.05.

The top traded stock by volume was Reefton Mining 38.28 million shares worth A$3.60 million changing hands, it lost 0.2 of a cent to nine cents.

Preliminary national turnover was 1.07 billion shares worth A$4.96 billion with 567 stocks up, 380 down and 315 unchanged.

- AAP