Australian shares make slight gains

Australian share prices closed 0.79 percent higher on Monday following further gains on Wall Street, with major resource stocks leading the way, dealers said. They said core US consumer inflation data Friday helped reassure investors somewhat on the outlook for interest rates and encouraged another strong showing in New York, which set the region up for a positive day.
The benchmark S&P/ASX 200 was 49.6 points higher at 6,343.4 while the broader All Ordinaries added 48.2 points to 6,365.3. Turnover was 2.01 billion shares worth 6.40 billion dollars (5.37 billion US), with rises leading falls 679 to 661 and 361 stocks unchanged.
Bell Potter Securities advisor Stuart Smith said aside from the US consumer inflation data the local market took support from indications by central bank governor Glenn Stevens that interest rates will not rise in the near-term.
The market was likely to trade sideways ahead of the expiry of options Thursday, an event which generally leads the market into a consolidation phase, he said.
Diversified miner Rio Tinto touched 100 dollars before pulling back below that level - the first company on the Australian Stock Exchange to reach 100 dollars since the late 1960s. Rio Tinto advanced 2.59 dollars or 2.66 percent to a record close of 99.99 dollars, just off a new all-time high of 100.09. Fellow global miner BHP Billiton also hit a record close, rising 0.68 or 2.00 percent to 34.68.
SingTel climbed on news that its Optus unit, which is in a joint venture with Futuris Corp's subsidiary Elders, was granted 958 million dollars in funding from the Australian government to build a regional broadband network.
SingTel gained 0.05 to 2.64. Telstra fell 0.08 to 2.74 and its T3 receipts retreated 0.09 to 3.26. Australian-listed Auckland International Airport (AIA) rose sharply on interest from the Canada Pension Plan Investment Board in taking a stake in the operator of New Zealand's busiest airport.
Macquarie Airports is also seen eyeing a bid after selling out of the Rome airport operator. AIA jumped 0.32 or 12.65 percent to finish at 2.85 while Macquarie Airports gained 0.05 to 4.25.