The Australian share market closed in positive territory amid expectations of strong results from the materials sector and a good performance from energy and financial stocks.

The benchmark S&P/ASX200 index added 28.8 points, or 0.63 per cent, to close at 4594.9 points, while the broader All Ordinaries index gained 29.3 points, or 0.64 per cent, to 4615.6 points. On the Sydney Futures Exchange, the September share price index

contract rose 29 points to 4558 points, with 31,666 contracts traded. The major miners traded higher, with Rio Tinto closing 80 cents up, or 1.09 per cent, at $74.00 and BHP Billiton added 42 cents to $41.55.

The banks closed higher. NAB was up two cents at $25.05, Commonwewalth Bank gained 45 cents to $53.04, Westpac was 18 cents higher at $23.80, while ANZ Banking Group rose five cents to $23.10. Shares in Bendigo and Adelaide Bank added 37 cents, or 4.47 per cent, to $8.64 after it reported a 189.5 per cent increase in full

year net profit. In other news on Monday, Mirvac Industrial Trust (MIX) said it had defaulted on a $123.5 million debt that matured on August 7 and was not repaid, after it was forced to re-start negotiations to extend the facility's maturity date. MIX securities fell 0.2 cent, or eight per cent, to 2.3 cents.

Junior explorer Eastern Star Gas said it planned to raise $100 million in fresh capital to buy new land, explore for reserves and progress its Narrabri coal seam gas project in NSW. It also flagged a reserve upgrade at its Narrabri project.

Eastern Star was in a trading halt. It traded last at 91.5 cents. The spot price of gold in Sydney was $1,208.6 per fine ounce, up $11.40 from Friday's close of $1,197.20. Newcrest Mining closed 37 cents higher at $34.87 and Lihir Gold was six cents higher at $4.32. The most traded stock by volume was Mantle Mining Corporation, with 74.69 shares changing hands for $4.05 million.

Mantle was 2.3 cents, or 76.67 per cent, higher at 5.3 cents on news it had signed an agreement with Exergen Pty Ltd for the development of its Bacchus Marsh brown coal project in Victoria. Preliminary market turnover was 1.84 billion shares worth $4.39 billion, with 600 stocks up, 448 down and 372 unchanged.