Australian stock market inches up as mining losses balance out retail, industrial gains

Australian stocks made small gains as losses among big miners were offset by higher retail and industrial shares.

The benchmark S&P/ASX200 index was up 7.3 points, or 0.16 per cent, at 4,712.3 points, while the broader All Ordinaries index was up 6.7 points, or 0.14 per cent, at 4,818.7 points.

On the ASX 24, the March share price index futures contract was 10 points higher at 4,703 points, with 17,864 contracts traded.

Further weakening of commodity prices and the ongoing flood crisis in Queensland continued to impact mining companies, with BHP Billiton down 17 cents, or 0.38 per cent, to $44.45, and Rio Tinto lost 12 cents, or 0.14 per cent, to $84.36.

The bank sector also weighed on the market for most of the session, but rose into positive territory in the final moments of trade.

Westpac was the only bank to fall, down eight cents to $22.07, while ANZ added four cents to $22.96, National Australia Bank gained 10 cents to $23.79 and Commonwealth Bank lifted 16 cents to $50.05.

Retail stocks were among the best performers after a rise in retail spending during November, edging up 0.3 per cent, according to data released by the Australian Bureau of Statistics.

The figures met expectations, but investors reacted positively.

Myer gained 11 cents, or 3.25 per cent, to $3.49, David Jones added 12 cents, or 2.67 per cent, to $4.62, JB HiFi rose by 48 cents, or 2.73 per cent, to $18.07 and Harvey Norman closed two cents higher at $2.90.

Woolworths gained nine cents to $26.36 and Coles owner Wesfarmers lost eight cents to $31.20. Several major industrial stocks also posted solid gains.

Leighton added 61 cents to $31.40, while the aviation sector was strong.

Qantas added 10 cents, or 4.07 per cent, to $2.56, while Virgin Blue gained two cents to 45 cents after signing a 10 year strategic alliance with Singapore based regional operator Skywest Airlines.

The energy sector was another positive performer, with Santos up 25 cents to $13.17, Woodside 21 cents higher to $42.99, while Oil Search closed steady at $7.00.

The spot price of gold in Sydney was $1,373.30 per ounce, up $4.02 on Friday's close of $1,369.28.

Newcrest Mining gained 23 cents to $38.84.

The most traded stock by volume was South African explorer Continental Coal Ltd, with 163.7 million shares changing hands for $13.84 million.

Continental Coal shares gained 0.5 cent to 8.5 cents.

Preliminary national turnover was 2.16 billion shares worth $2.9 billion, with 576 stocks up, 549 down and 401 unchanged.

The Australian dollar gained slightly in Asia trade Monday as the U.S. dollar was hit by a weaker than expected jobs report in that country and comments out of China.

Australian bonds moved higher on both ends of the curve, helped by the global factors as well as a tepid retail sales report in Australia.

Continuing a move from Friday, the U.S. dollar remained under pressure after a U.S. employment report early in Friday's session showed payrolls increased by 103,000 jobs last month, well below the 150,000 consensus estimate.

Also hitting the U.S. dollar, the deputy head of the Guangzhou branch of the People's Bank of China said China should diversify its foreign exchange reserves to increase the proportion of currencies other than U.S. dollars.

The news had traders pushing out of U.S. dollars, with the Australian dollar benefiting as a result.

Still, the gains were somewhat muted as Australia's largest trading partner, China, posted a December trade surplus of US$13.1 billion, below market expectations.

Moreover, Australia's November retail sales rose a tepid 0.3%, following a 0.8% slide in October.

The Australian dollar traded at $0.9960, up from $0.9934 late Friday.

Against the Japanese yen, the Australian dollar traded at 82.755, from 82.89.

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