News Service from House Harris

Aust sharemarket driven higher by gold and energy stocks

PERTH, Dec 29 AAP - The Australian sharemarket was driven higher on Monday by gold and energy stocks as prices for the precious metal and oil surged on the back of geopolitical tensions.

The benchmark S&P/ASX200 index was up 38.9 points, or 1.09 per cent, at 3,621.1, while the broader All Ordinaries index had gained 39.2 points, or 1.12 per cent, to 3,554.2.

On the Sydney Futures Exchange, the March share price index futures contract was one point higher at 3,588 on a volume of 13,149 contracts.

IG Markets research analyst Ben Potter said the local market made a strong start following positive leads from Wall Street on Friday on news that cash-strapped General Motors was now eligible for emergency funding under a US government relief program.

Mr Potter said the domestic energy sector was higher after the crude oil price jumped more than six per cent to $US37.71 a barrel on Friday following the United Arab Emirates' pledge to cut supply in line with a directive by the Organisation of Petroleum Exporting Countries.

Woodside Petroleum surged $1.87, or 5.68 per cent, to $34.77 and Oil Search rose 18 cents, or 4.27 per cent, to $4.40.

Santos bucked the trend, falling six cents to $14.10.

Mr Potter said renewed hostilities in the Middle East had increased gold's attractiveness as a safe-haven investment.

Spot gold was $US885.35 per fine ounce in Sydney, up $US44.70 from Wednesday's close of $US840.65.

Lihir Gold jumped 17 cents, or 6.05 per cent, to $2.98, Newcrest rose 59 cents, or 1.86 per cent, to $32.37 and Newmont gained 26 cents, or 4.74 per cent, to $5.74.

Mining giant BHP Billiton was up seven cents at $28.91 while rival Rio Tinto was steady at $36.59.

The major banks were stronger.

Commonwealth Bank advanced $1.03, or 3.79 per cent, to $28.18, NAB put on 76 cents, or 3.78 per cent, to $20.87, Westpac added 25 cents, or 1.52 per cent, to $16.75 and ANZ lifted 43 cents, or 2.89 per cent, to $15.30.

ANZ's retail financing arm, Esanda, has signed up Subaru Australia under the federal government's $2 billion financing plan to save the motor vehicle industry.

In other headlines, Australia's third-largest diversified miner, OZ Minerals, has not been able to advise whether it can refinance $US560 million ($A816 million) in debt facilities before they expired on Monday, December 29.

The company said it would provide an update on Tuesday, December 30.

Its shares remain in a trading halt and last traded at 55 cents.

Retail giants Myer and David Jones said sales were strong over the post-Christmas weekend, with shoppers snapping up heavily-discounted items.

Shares in David Jones rose six cents, or 2.03 per cent, to $3.01.

Among other retail stocks, Coles-owned Wesfarmers was up 38 cents, or 2.25 per cent, at $17.30, rival Woolworths shed nine cents to $26.31 and Harvey Norman advanced six cents, or 2.46 per cent, to $2.50.

In the media sector, News Corp was up eight cents at $13.23, its non-voting scrip added six cents to $12.24, Fairfax put on 9.5 cents, or 6.07 per cent, to $1.66 and Consolidated Media was steady at $1.85.

The most traded stock by volume was Macquarie Office Trust, with 64.65 million shares worth $18.78 million changing hands.

Its shares fell four cents, or 12.12 per cent, to 29 cents.

Market turnover reached 770.46 million shares, worth $1.62 billion, with 487 stocks up, 289 down and 241 unchanged.