SYDNEY: Australian stocks broke a five-day losing streak on Friday to close 0.6 percent higher as concern about Middle East tensions eased and Origin Energy rallied on a liquefied natural gas deal.
Retailers also buoyed the market with Woolworths up 1.3 percent after delivering earnings ahead of expectations and rival supermarket owner Wesfarmers put on 2 percent.
Brokers said the market's underlying fundamentals remained strong and investors were taking heart from speculation that Libyan leader Muammar Gaddafi may lose power and Saudi Arabia's assurances it can counter Libyan oil supply disruptions.
"There is some excellent value around now, certainly in the top ten, because they have been knocked around by the Libyan business in the last week. Gaddafi has nothing to do whether Commonwealth Bank are making a dollar or not," said Michael Heffernan, strategist at broker Austock.
Origin Energy shares led gains, jumping 5.8 percent to close at A$16.83 after China's Sinopec signed a 20-year liquefied natural gas supply deal with Australia Pacific LNG. Origin Energy jointly owns the project with ConocoPhillips.
Retailer Woolworths opened weaker following the release of its first-half results but closed 1.3 percent firmer at A$26.85. The company's 6 percent rise in first-half net profit beat forecasts but warned the trading environment could remain subdued in the second half.
Rival supermarket owner Wesfarmers jumped 2 percent to A$33.26.
Electrical retailer Harvey Norman Holdings rose 0.7 percent to A$3.04 after reporting a 16.5 percent fall in half-year profit.
Insurers also bounced back after recent losses following floods and storms in Queensland and this week's earthquake in New Zealand.
Suncorp rose 2.6 percent to A$8.61, while IAG added 1.1 percent and QBE closed 0.8 percent firmer.
Telecoms group Telstra topped volumes with a 1.8 percent rise to A$2.82.
Resources weighed on the market, however. Rio Tinto lost 0.4 percent to A$83.93 and BHP Billiton declined 0.09 percent to A$45.95. Gold miner Newcrest finished the session 1.2 percent lower at A$38.63.
The underlying S&P/ASX 200 index clawed back early losses to close 27.2 points firmer at 4,836.5, according to the latest available data.
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