The Australian share market reversed its early losses to close higher, buoyed by healthcare, energy and bank stocks. The benchmark S&P/ASX200 index was up 20.2 points, or 0.44 per cent, at 4,618.5 points, while the broader All Ordinaries index added 16.5 points, or 0.35 per cent, to 4,706.7 points. On the ASX24, the December share price index futures contract was 28 points higher at 4,625 points, with 36,048 contracts traded.

The market opened the week lower, due to concerns about European sovereign debt and a negative lead from a shortened Wall Street session, but picked up during afternoon trade. The gains came from the healthcare and energy sector stocks, while the big four banks also helped the major indices to a higher close. In healthcare, Cochlear gained $2.20, or 2.79 per cent, to $80.95, Sonic Healthcare added 15 cents, or 1.28 per cent, to $11.88 and CSL was 24 cents higher at $35.24. Rising oil prices boosted energy stocks, with Woodside adding 76 cents to $41.71, Oil Search gaining three cents at $6.73 and Santos up six cents to $12.37. Agricultural chemicals supplier Nufarm Ltd was among the best performers, adding 21 cents, or 4.95 per cent, to $4.45.

Among the banks, Commonwealth gained 99 cents to $48.57, Westpac rose by 40 cents to $21.55, ANZ Banking Group added 26 cents to $22.78 and National Australia Bank was unaffected by its technical woes to close 30 cents higher at $23.53. AMP and AXA both lost a little ground after they signed documents to begin AMP's takeover of the wealth manager. AMP lost two cents to $5.09 and AXA lost two cents to $6.18.

The resources sector was lower, with the smaller players losing more ground than the big miners. BHP Billiton added four cents to $43.24 and Rio Tinto lost 20 cents to $83.84, while Fortescue shed 11 cents to $6.54 and Iluka lost six cents to $7.59. Gold miner Newcrest lost 60 cents to $39.77 as the spot price of gold in Sydney was $1,360.70 per fine ounce, down $9.80 on Friday's closing price of $1,370.50.

Telstra shares shed one cent to $2.84 as legislation to structurally separate its wholesale and retail arms passed the lower house in federal parliament. Constructor and contract miner Leighton said the Spanish suitor of its major shareholder Hochtief had agreed to keep the governance agreements between the German and Australian companies if the takeover succeeds. Leighton shares dropped two cents to $31.91. Baraka Petroleum was the top traded stock by volume, with 165.4 million shares traded for a value of $1.28 million. Baraka shares gained 0.2 of a cent, or 33 per cent, to 0.8 cents. Preliminary national turnover was 2.35 billion shares, worth $4.65 billion, with 504 stocks trading higher, 596 down and 359 unchanged.

The Australian dollar was lower Monday, dragged down by ongoing weakness in the euro amid sovereign debt concerns, instability on the Korean Peninsula and local data that pointed to a weak, potentially flat, economic performance in the third quarter. All eyes are now cast forward to a speech on the economy by Reserve Bank of Australia Governor Glenn Stevens. Stevens is expected to discuss the twin speed Australian economy, explaining how the RBA will approach strength among miners occurring at the same time that manufacturers and retailers struggle.