Australian Stock Market Report - Closing

Local stocks closed at highs not seen since April today, underpinned by stronger commodity prices and takeover activity. In thin trade, the All Ordinaries Index (XAO) rose 18.6pts or 0.4pct to finish at 4888.2.

The materials sector was among the best performing, with index leader BHP Billiton (BHP) once again rising on firmer metals trade in London overnight. BHP shares closed up 1.4pct to $46.47. Rio Tinto (RIO) shares rose 0.5pct to $87.20 as it was revealed the mining giant has made a $16 per share all cash offer for Riversdale Mining (RIV), which has assets in Africa. The deal values RIV at $3.9 billion. RIV shares closed higher by 1.7pct to $16.57.

The price of crude oil held at two year highs during Asian trade, up 10c to US$90.58 a barrel. Shares in Caltex (CTX) gained 1.3pct to $14.40 while Woodside Petroleum (WPL) was firmer by 0.2pct to $42.86. Santos (STO) closed down 1.1pct to $13.41.

Financial stocks were well supported, with the sector firming by 0.4pct. Shares in the NAB (NAB) rose by 0.6pct to $24.20 while the Commonwealth Bank (CBA) was firmer by 0.8pct to $51.25 and the ANZ (ANZ) lifted by 0.3pct to $23.71. Westpac (WBC) firmed by 0.7pct to $22.77 while Macquarie Group (MQG) increased by 0.8pct to $37.50.

Telstra (TLS) today informed the market it is facing a $138 million write-down due to its Octave business in China. However the impairment charge is unlikely to impact the telco's bottom line and TLS today added 0.4pct to $2.78.

Online job advertiser Seek Limited (SEK) plans to make a push into South-East Asia, by investing $206 million into a 60pct stake of Jobs DB, an Asian online employment agency. SEK rose 0.2pct to $6.57.

Consumer staple stocks performed well today, with Wesfarmers (WES) adding 0.7pct to $32.40 and Woolworths (WOW) increasing by 0.7pct to $26.99.

The Australian dollar hit parity against the greenback again today, underpinned by firmer commodity prices. At 4pm AEDT the Aussie was worth US$1.0021. It was also worth £0.6495 and €76.38c.

On the market overall, a total of 1.83 billion shares were traded, worth $3.5 billion. 613 were up, 454 were down and 408 were unchanged.

At 4.15pm AEDT on the ASX24, the futures contract was at 4806, up 37pts.

Ahead tonight; personal income, new home sales and durable goods orders are released in the US.