Australian stocks: Stocks close higher as NAB shares rally

MELBOURNE - Australian stocks closed up 0.3 per cent on Wednesday after National Australia Bank shares recovered from an early fall on its annual profit, while retail stocks were buoyed by consumer confidence data.

Major mining companies also posted gains, while falling oil prices depressed energy stocks.

The benchmark S&P/ASX 200 index closed up 10.9 points, 0.3 per cent at a new high close of 3,846.4, according to latest available data. The index ended at the session high but remained slightly below the record of 3,854.9 reached on Nov. 4.
"You have a bit of a potpourri of major stocks going up. There is no major theme there, but there is a buoyancy, I would say, that permeates the market," F.W. Holst & Co. analyst Michael Heffernan said.

National Australia Bank (ASX: NAB.ax) met market expectations with a 21 per cent fall in second-half cash earnings and forecast its earnings decline would bottom in the first half of 2005.

Its shares closed up 1.3 per cent at A$28.20 after sliding to A$27.54 in early trade.
"The commentary was reasonable going forward and I think that has been the catalyst for a bit of an upward move," Burrell & Co. dealer Peter Wright said.
Retail stocks rallied as the Westpac-Melbourne Institute consumer sentiment index showing sentiment rose to a 10-year high in November, with the expected timing of the next increase in official interest rates was pushed deeper into 2005.
David Jones (ASX: DJS.ax) closed 3.8 per cent firmer at A$2.17, Coles Myer (ASX: CML.ax) closed up 0.9 per cent at A$9.76 and Woolworths (ASX: WOW.ax) added 0.9 per cent to A$13.93.

Developer Multiplex MX(ASX: GCA.ax) closed up 5.8 per cent at A$4.04 on news that Standard & Poor's intended to reclassify its securities for inclusion in the S&P/ASX 200 Property Index.

Sonic Healthcare rallied 8.3 per cent to A$11.21 after Smith Barney raised its recommendation to buy from hold on news of British government plans for spending on pathology and radiology from the private sector.

On the downside, CSR (ASX: CSR.ax) fell 4.7 per cent to A$2.62, after gaining nearly five per cent on Tuesday when the sugar producer postd a strong first half profit rise.

Major resource stocks were higher with BHP Billiton (ASX: BHP.ax) gaining 0.8 per cent to A$14.09 and Rio Tinto (ASX: RIO.ax) up 0.3 per cent to A$37.66.
News Corp.NWS.AX added 0.8 per cent to A$23.45 after Liberty Media said a share-swap transaction that would nearly double its voting power in Rupert Murdoch's media empire was a "friendly" move.

Oil and gas producer Woodside slid 0.8 per cent to A$18.60 and Santos slipped 3.7 per cent to A$8.05 on weaker oil prices.