Energy, banks give bourse a bounce

THE Australian share market made solid gains yesterday after a surge in energy stocks and improvements for the big banks turned around a mixed overnight lead out of the US.

The ASX 200 was up 31.3 points, or 0.5 per cent, at 6121.4 points, as investors turned bullish ahead of the February reporting season starting next week.

The broader All Ordinaries was up 31 points, also 0.5 per cent, at 6229.8 points.

Energy stocks drove the gains after a survey showed oil production caps among members of the Organisation of the Petroleum Exporting Countries cartel were more than offsetting rises in US oil production.

Santos shares added 4.3 per cent to $5.37, Oil Search 2.9 per cent to $7.87 and Wood

side Petroleum gained 2.1 per cent at $34.24. Origin Energy was up 2.2 per cent at $9.60.

Financial stocks gained ground after a midweek dip. The Commonwealth Bank rose 1 per cent to $80.79, ANZ was up 0.7 per cent to $29.11 and NAB added 0.9 per cent to $29.56. Westpac gained 0.9 per cent to $31.70. Miners also lifted, with

BHP Billiton up 0.5 per cent to $30.81, Rio Tinto finding 0.7 per cent at $78.25, and the gold miner Newcrest Mining adding 1.1 per cent to $23.07.

The Aussie dollar was buying US80.02c last night amid what analysts said was a more confident picture emerging from the US Federal Reserve.