News Service from House Harris

Aust stocks ignore Wall St to end week on a high

SYDNEY, Dec 19 AAP - The Australian share market shrugged off a big fall on Wall Street and weaker commodity prices to post a gain on stronger banking stocks.

The benchmark S&P/ASX200 index gained 34.5 points, or 0.96 per cent, at 3,615.7, while the broader All Ordinaries index rose 25.5 points, or 0.72 per cent, to 3,547.2.

On the Sydney Futures Exchange, the March share price index contract was 27 points higher at 3,599 on a volume of 22,702 contracts.

Macquarie Private Wealth adviser Helen Spencer said a rebound in financial stocks after a bumpy week helped to offset losses in the resources sector.

"It is certainly a very encouraging result considering a weak lead into today's market, with the US down quite heavily and commodities hit quite hard again overnight," Ms Spencer said.

Oil prices tumbled to their lowest levels for more than four years at under $US38 per barrel in New York, while the Dow Jones industrial average lost almost 2.5 per cent to 8604.99.

BHP Billiton, Australia's largest oil producer, slumped $1.08, or 3.48 per cent, to $29.92.

Rival Rio Tinto shed 99 cents, or 2.48 per cent, to $39.01.

Other energy producers also dropped, with Woodside down $1.36, or 4.02 per cent, to $32.45 and Oil Search off 30 cents, or 6.68 per cent, to $4.19, but Santos lifted 19 cents to $14.29.

The financials posted strong gains to edge the market higher.

"There is a bit of a recovery in the financial stocks after their recent bedding down, so certainly a bit of bargain-hunting coming back in there is helping to boost the bank stocks today," Ms Spencer said.

National Australia Bank rose 18 cents to $20.00, CBA gained $1.30 to $27.80, ANZ added 37 cents to $14.64, while Westpac lifted $1.37 to $17.31.

Gold miners were mixed.

Newcrest Mining was up $3.14, or 10.34 per cent, to $33.50, Lihir Gold added six to $2.80, while Newmont Mining lost nine cents, or 1.61 per cent, to $5.51.

The spot price of gold in Sydney ended at $US852.55 per fine ounce, down $US12.45 on Thursday's close of $US865.00.

Making news on Friday, PaperlinX shares plummeted 34 cents, or 32.08 per cent, to 72 cents, after the paper maker announced it had breached loan covenants related to its earnings because of a delay in the receipt of proceeds from the sale of its European assets.

Qantas shares rose 21 cents, or 8.64 per cent, to $2.64 after plans for a merger with British Airways were called off.

Among the retailers, Woolworths improved $1.14, or 4.5 per cent, to $26.49, David Jones added four cents to $3.01 and Coles owner Wesfarmers rocketed 83 cents to $17.39.

The most traded stock was GPT Group, with 423.7 million shares changing hands for $400.9 million.

Shares in the property investment company lost 2.5 cents, or 2.63 per cent, to 92.5 cents.

Market turnover was 2.1 billion shares, worth $7.24 billion, with 398 stocks up, 485 stocks down and 262 unchanged.