Miners push stocks to five-month high

The Australian share market closed at a five-month high after firmer commodity prices drove gains in the resources sector.

The benchmark S&P/ASX200 index was up 16.1 points, or 0.34 per cent, at 4,697.5 points, while the broader All Ordinaries index had added 21.6 points, or 0.46 per cent, to 4,762.1 points.

On the Sydney Futures Exchange at 1616 AEDT, the December share price index contract was 14 points higher at 4,709 points, with 18,816 contracts traded.

Advertisement: Story continues below City Index head of dealing Asia Pacific Michael McCarthy said strong price rises for copper and aluminium on Friday had boosted the mining sector.

"The global miners are solidly higher, but it is the medium to small resource stocks that are doing particularly well," Mr McCarthy said.

BHP Billiton was up 45 cents, or 1.1 per cent, at $41.45 while Rio Tinto put on 54 cents to $80.09.

Fortescue shares jumped after the iron ore miner announced on Sunday a new financing facility, which eased its balance sheet pressure and firmed its expansion plans.

Fortescue was the best performer on the S&P/ASX 100 index, closing 45 cents, or 7.76 per cent, higher at $6.25.

"Companies such as PanAust, Medusa Mining and Perilya have all made spectacular gains as shorts and sceptics are squeezed," Mr McCarthy said.

PanAust, a gold and copper miner, finished 8.5 cents, or 11.49 per cent, stronger at 82.5 cents.

Gold miner Medusa added 42 cents, or eight per cent, to $5.67 and Perilya, which last week moved to diversify beyond base metals into gold and copper, appreciated four cents, or 7.77 per cent, to 55.5 cents.

The spot price of gold in Sydney at 1620 AEDT was $US1,352.40 per ounce, up $US19.71 from Friday's local close of $1,332.69.

Gold miner Newcrest was up 25 cents at $42.16.

Among energy stocks, Woodside was up 51 cents, or 1.15 per cent, at $44.94, Santos gained 14 cents, or 1.1 per cent, to $12.91 and Origin Energy was 10 cents firmer at $16.42.

In the banking sector, Commonwealth Bank was steady at $51.12, ANZ was nine cents higher at $24.16, National Australia Bank was five cents higher at $25.80 and Westpac slipped two cents to $23.16.

Making headlines on Monday, Lend Lease said the property developer and manager was well-placed for growth and would consider investing further in Asia, particularly in the retail sector.

Lend Lease shares eased five cents to $7.81.

BlueScope Steel said steel prices had started to improve after a substantial fall in the September quarter.

Shares in BlueScope inched one cent lower to $2.23.