Australian Stocks: Stocks closed up as Telstra lifts

Telstra closed up two cents at $4.72 on volume of 22.19 million shares worth $159.66 million.

The company is planning to buyback $750 million shares through a tender process at between $4.05 and $4.65 per share. It opens on October 25 and closes on November 12. Tomorrow is the last day for investors who want to participate in the buyback to buy shares in the telco.

Meanwhile, Optus parent Singapore Telecommunications closed down two cents at $1.93.

Investors reacted positively, if cautiously, to news that James Hardie chief executive Peter Macdonald and the chief financial officer Peter Shafron would stand aside from their respective roles.

James Hardie shares closed up seven cents at $5.85.

"This story is still not over by a long shot," Mr Smith said, noting that many market players had wondered why the pair did not just resign.

Mr Macdonald and Mr Shafron have stood aside while under investigation by the Australian Securities and Investments Commission and could face charges over possible breaches of the Corporations law.

This comes a week after the findings of a special inquiry into the company's asbestos liabilities found the pair had failed in their duties as officers of a company.

Energy stocks proved popular on the day, reaping the benefits of the oil price hike.

Woodside Petroleum ended up eight cents to $19.83, Santos was up 11 cents to $7.30 and WMC Resources was up four cents to $5.21.

Heavyweight BHP Billiton gained 17 cents to $13.93 and Rio Tinto rallied 22 cents to $37.40.

Stapled securities in takeover target Ronin Property Group closed up eight cents to $1.34.

Multiplex Group yesterday announced a $1.33 billion takeover of the property trust. Its offer is equivalent to $1.33 per security.

Multiplex closed up 15 cents at $3.82.

Elsewhere, building products company Boral picked up 11 cents to $6.85 after yesterday abandoning its troubled takeover bid for Adelaide Brighton Ltd.

The target finished down four cents at $1.43.

Airline stocks Virgin Blue and Qantas both closed up one cent, at $1.79 and $3.42, respectively.

The spot price of gold in Sydney at 1645 AEST was $US410.4 per ounce, up $US2.625 on yesterday's close.

AngloGold Ashanti fell three cents to $10.47, Lihir Gold rose one cent to $1.06, Newmont picked up nine cents to $6.04 and Newcrest climbed 25 cents to $14.51.

The top traded stock by volume was Victoria Petroleum, with 50.59 million shares changing hands worth $2.02 billion. The stock was up 0.2 of a cent to four cents.

Preliminary national turnover was 1.04 billion shares traded for $2.29 billion, with 637 stocks rising, 578 falling and 390 unchanged.

AAP ewcrest climbed 25 cents to $14.51. The top traded stock by volume was Victoria Petroleum, with 50.59 million shares changing hands worth $2.02 billion. The stock was up 0.2 of a cent to four cents. Preliminary national turnover was 1.04 billion shares traded for $2.29 billion, with 637 stocks rising, 578 falling and 390 unchanged. AAP 2 8-09-04 1700

- NZPA