News Service from House Harris

Aust stocks close 1.4 pct higher

SYDNEY, Nov 27 AAP - The Australian share market closed around 1.4 per cent stronger, with the big miners leading the way after continued gains on Wall Street overnight.

The benchmark S&P/ASX200 index closed up 48 points, or 1.36 per cent, at 3588, while the broader All Ordinaries gained 48.6 points, or 1.4 per cent, at 3528.2.

On the Sydney Futures Exchange, the December share price index futures contract was up three points at 3568 points on volume of 30,706 contracts.

Cameron Securities client adviser Adrian Leppinus said the market put in a strong performance, with the resources sector showing strong gains.

"Most of the strength is all over the resources," he said.

"BHP Billiton is up another five per cent and Rio Tinto is up another two per cent."

IG Markets research analyst Ben Potter said the market could continue its gains on Friday as the US stockmarket was closed tonight.

"With US markets closed for Thanksgiving, there is a good possibility today's positive momentum will carry through to tomorrow."

Shares in resource giant BHP Billiton closed up $1.55, or 5.69 per cent, at $28.80.

The company said on Thursday at its annual general meeting that it was better placed than any other major miners to withstand the global financial and commodities markets turmoil.

Rio Tinto, was in the green after a heavy slump yesterday after BHP abandoned its proposed takeover bid.

Rio Tinto shares gained 84 cents, or two per cent, at $42.85.

Australia's second biggest oil and gas producer, Woodside Petroleum, was up $2.10, or 6.58 per cent, at $34.00, Oil Search had risen 40 cents, or 8.93 per cent, at $4.88 and Santos had gained 13 cents to $14.13.

The major banks were mixed. Commonwealth Bank was up nine cents to $32.75, Westpac up 15 cents at $16.75 but National Australia Bank fell 57 cents at $19.00 and ANZ was down five cents at $14.00.

Spot gold in Sydney closed at $US816.00 an ounce, up $US1.55 on Wednesday's local close of $US814.45.

The gold miners were stronger. Newcrest Mining gained 66 cents, or 2.64 per cent, to $25.66, Newmont Mining rose 15 cents, or 3.09 per cent, to $5.01 and Lihir Gold was up five cents to $2.25.

QBE Insurance Group said it has raised $2 billion from institutional investors.

QBE fell 50 cents, or 2.17 per cent, to $22.50.

Supermarket giant Woolworths, which has reaffirmed its guidance for its fiscal 2009 of upper single-digit sales growth, closed up 30 cents, or 1.2 per cent, at $25.40.

The other retailers were mixed. Harvey Norman shares were down seven cents, or 3.23 per cent, to $2.10, Coles owner Wesfarmers had dropped 45 cents, or 2.37 per cent, at $18.55 and David Jones gained four cents to $2.49.

Among media stocks, Fairfax gained 1.5 cents to $1.315, News Corp was up 66 cents, or 6.06 per cent, at $11.56 and its non-voting scrip was up 79 cents, or 7.66 per cent, at $11.10.

Shares in Seven Network dropped 13 cents to $5.45, while Ten Network gained 4.5 cents to $1.08.

Qantas closed up 18 cents to $2.35 after saying it would cut its fuel surcharge on domestic airfares by up to $5 a ticket from Friday following a fall in the oil and jet fuel prices.

Virgin Blue closed steady at 31 cents.

The most traded stock was Babcock & Brown Infrastructure (BBI) with 57.02 million units traded for a total of $2.27 million.

Stapled securities in the infrastructure fund were up one cent, or 30.3 per cent, to 4.3 cents.

Market turnover was 1.28 billion shares, valued at $4.66 billion, with 517 stocks up, 378 down and 300 unchanged.

AAP lm/jmc