THE share market bounced back from mid week losses to close up 1.5 per cent, following a strong US lead and higher base metals prices overnight. The local bourse was more than four per cent higher in morning trade but closed around 1.5 per cent stronger, coming off as traders sold into the rally. The benchmark S&P/ASX200 index was up 50.8 points at 3,748.1, while the broader All Ordinaries index had risen or 1.46 per cent, to 3,726.0. Despite the stronger finish, the big losses mid week took $69 billion from the value of the All Ordinaries index compared with last Fridays's close. The mining and energy sectors were both up, jumping almost 3 per cent. IG Markets research analyst Ben Potter said mining and energy stocks contributed to today's gains, up 2.9 per cent following a rebound in the price of oil overnight. "Oil gained 3.7 per cent after falling to near 22-month lows of $US54.67 per barrel,'' Mr Potter said. "This was despite the International Energy Agency lowering its 2008 and 2009 demand forecasts. "They are now expecting demand to grow by 120,000 barrels in 2008, down from a previously forecast 330,000 barrels.'' Among energy stocks, Woodside was steady at $36.90 after touching a high of $38.92. Oil Search surged 7.37 per cent, to $5.10 and Santos had gained 4.25 per cent, to $13.50. Mining giant BHP Billiton had jumped $1.40 to $26.40 and its takeover target Rio Tinto had leapt $3.00 to $72.00. Property developer Mirvac Group says it is starting to see early signs of growing demand in the residential property market. Mirvac shares were up 10 cents, or 6.67 per cent, to $1.60. Retailers were a mixed bag, with both major players finishing up very differently. Disgruntled Wesfarmers shareholders had a symbolic win after voting down the conglomerate's remuneration report, including a $450,000 increase in the chief executive's cash salary. The Coles owner's shares lost 26 cents to $17.80 while shares in fellow retail giant Woolworths had added 62 cents to $28.28. In other news, Western Australian ship builder Austal has been awarded a contract to build high-speed transport vessels for the US military, worth up to $US1.6 billion ($A2.43 billion). Austal's shares rose 36.5 cents, or 22.53 per cent, to $1.985. Financials were also mixed, however most ended the day down. ANZ shed 27 cents to $13.78, Commonwealth Bank fell 2.73 per cent, to $32.10 and St George was down 3.33 per cent, to $23.20. Westpac also slipped 17 cents to $16.80. NAB seemed to be the only gainer, jumping 39 cents to $19.79. At 4.28pm (AEDT), spot gold in Sydney was trading at $US726.55 an ounce, up $US11.80 on yesterday's local close of $US714.75. Gold stocks were accordingly higher. Newcrest was 5.41 per cent stronger to $21.04, Newmont soared 6.94 per cent to $3.85 and Lihir Gold was up 10.5 cents to $1.88. The most traded stock was Babcock & Brown Infrastructure, with 61.53 million units changing hands, worth a total of $4.84 million. Shares in the company were down 25.56 per cent, to 6.7 cents. On the Sydney Futures Exchange at 4.18pm , the December share price index futures contract was 29 points higher at 3,782 on a volume of 34,366 contracts.

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