MARKET CLOSE
(4.30pm AEDT)

The Australian share market edged out a win for the final trading session of the week, boosted by positive signs on the US labour market. The number of Americans lining up for unemployment benefits last week remained at the lowest reading since March 2008, giving US stocks a boost. The All Ordinaries Index (XAO) today gained 21.5pts or 0.5pct to 4389, and was up 2.7pct on the week.

Financial stocks led the gains, with the sector up 0.8pct. Shares in the National Australia Bank (NAB) rose 1.3pct to $23.52 while Macquarie Group (MQG) was up 0.9pct to $27.01.

Index leader BHP Billiton (BHP) added 0.9pct to $36.54 while Rio Tinto (RIO) was firmer by 0.9pct to $68.09.

However shares in Australia's largest listed gold producer Newcrest mining (NCM) fell 4.3pct to $34.55 after the company flagged lower production in the March quarter due to problems at its Lihir operation in Papua New Guinea.

Other losers today included AGL Energy (AGK) after its first half profit missed expectations. Underlying net profit after tax rose 3pct to $232.9 million. AGL´s statutory profit was hit by a cut in the valuation of its derivatives portfolio, falling 51pct. AGL will pay a dividend to shareholders of $0.29 a share. AGL shares fell 4.7pct today to $13.67.

The Reserve Bank Governor today delivered the clearest message yet that the Central Bank has a strong degree of confidence in the outlook for the domestic economy. The clear sense from today's testimony to the Parliamentary Economics Committee was that Reserve Bank officials are extremely comfortable with current settings. The tone and comments from the testimony was consistent with CommSec's view that the cash rate will remain on hold until at least the May meeting.

The Australian dollar ended the day's trade at US107.43c, £0.6823 and €80.34c.

On the market overall, a total of 2.19 billion shares were traded, worth $6.34 billion. 607 were up, 398 were down and 421 were unchanged.

At 4.30pm AEDT On the ASX24, the futures contract was at 4290, up 30pts.

Ahead tonight, German December quarter GDP is released and is expected to have contracted by 0.2pct from the previous three months. The UK´s economy is also expected to have shrunk by that amount, with trade figures also expected for both Germany and the UK. In the US, February consumer confidence and January new home sales data is released.

Juliette Saly, CommSec Market Analyst

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