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Share market hits three month high

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The share market has hit a three month high thanks to demand for mining and energy stocks including BHP Billiton, Rio Tinto and Woodside Petroleum.

The benchmark S&P/ASX 200 index rose 0.4 per cent to 5,507.8, its highest level since August 26.

Bell Direct equities analyst Julia Lee said investors piled into the local market despite no direction from Wall Street, which was closed for the Thanksgiving holiday.

Gains in commodity prices, including copper and iron ore, continued to support demand for resources stocks, she said.

“We’ve seen copper up 24 per cent for the month – that’s the best monthly performance for copper in 10 years,” she said.

BHP Billiton jumped 59 cents, or 2.3 per cent, to $26.50 after ratings agency Moody’s upgraded the mining giant’s outlook to stable from negative.

Moody’s said it expects the company to report improved margins and cash flow throughout next year.

Rio Tinto gained $1.46, or 2.4 per cent, to $61.76.

The local energy sector also found support on renewed hopes of an OPEC production cut deal next week, Ms Lee said.

Woodside jumped 35 cents to $31.10, Origin Energy rose five cents to $6.07 and Santos added one cent to $4.19.

Tatts Group gained 28 cents, or 7.1 per cent, to $4.21 after Tabcorp took control of a 10 per cent stake in the gaming firm for about $638 million. The move comes just over a month after the companies announced an $11.3 billion merger.

Tabcorp shares added five cents, or 1.09 per cent, to $4.63.

The big four banks were mixed, with National Australia Bank the only to rise, up 14 cents to $29.01.

Commonwealth Bank shedl 26 cents to $78.17, Westpac fell eight cents to $31.53 and ANZ lost five cents to $28.28.

KEY FACTS:

* The benchmark S&P/ASX 200 index gained 22.7 points, or 0.41 per cent, to 5,507.8 points.

* The broader All Ordinaries index rose 21.5 points, or 0.39 per cent, to 5,570.5 points.

* The December share price index futures contract was up 16 points at 5,513 points, with 25,044 contracts traded.

* National turnover was 2.9 billion securities traded, worth $7.4 billion.