AUSTRALIAN shares posted a third straight day of gains as stronger commodity price gave rise to more optimistic views on the prospects for a global economic recovery.


The benchmark SP/ASX200 index added 62.7 points, or 1.34 per cent, to 4756.4 points, while the broader All

Ordinaries index gained 62.9 points, or 1.32 per cent, to 4828.2 points.

On the ASX 24, the June share price index futures contract was 63 points higher at 4760, with 38,324 contracts traded.

Local investors followed a positive lead from Wall Street, where strength on commodities markets fuelled buying in resource sectors and a rise in the wider market.

“For the first time in a long while participants are starting to talk about strong demand fundamentals for commodities, which is an encouraging sign,” IG Markets strategist Ben Potter said.

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“It feels like sentiment has definitely improved.”

The best performers in the market were resources stocks, led by Sandfire Resources with a gain of 49 cents, or 7.74 per cent, to $6.82.

Beach Energy added seven cents, or 7.69 per cent, to 98 cents, and Aquila Resources ended 59 cents higher, up 7.27 per cent, at $8.70.

Major names were also stronger, with BHP Billiton up 53 cents, or 1.2 per cent, at $44.82, Rio Tinto added $1.04, or 1.3 per cent, to $81.10, and Fortescue Metals gained 10 cents, or 1.56 per cent, to $6.49.

The price of gold closed at $US1,495.62 per fine ounce, up $US5.77 from $US1,489.85 yesterday.

Stronger sentiment spilled over into other sectors, most notably financials, with the big banks recovering from the impact of Moody’s credit rating downgrade yesterday.

National Australia Bank rose by 47 cents to $27.40, ANZ gained 29 cents to $22.98, Commonwealth Bank added 58 cents to $52.38 and Westpac was nine cents higher at $22.90.

A standout performer was Brambles, on the back of positive financial results.

The pallets supplier reported a five per cent rise in sales in the nine months to March and maintained its targets for full year profit.

Brambles shares gained 27 cents, or 3.86 per cent, to $7.27.

Also making news, Transfield Services said it expected to incur a $16 million underlying loss on the sale of its American maintenance business USM, but investors welcomed its continued exit from maintenance services in North America.

James Hardie closed steady at $5.83 after earlier falling by a much as 3.3 per cent when it reported a $US347 million net loss in fiscal 2011 and forecast further flatness in its key US housing market.

National turnover was 2.47 billion securities worth $5.93 billion, with 702 stocks up, 427 down and 390 unchanged.

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