THE share market closed 1 per cent higher after strong profit results from the resource sector cheered the local market. At the 4.15pm (AEDT) close the benchmark S&P/ASX200 was up 35.7 points, or 1.05 per cent, at 3448.9, while the broader All Ordinaries added 31.1 points, or 0.92 per cent, to 3398. CMC Markets senior dealer Dominic Vaughan said the Australian market gained ground on Thursday despite the absence of any convincing leads from Wall Street overnight. He said the local market rose on the back of better than expected profit results from companies such as Santos Ltd and Lihir Gold. "It's a case of better than expected numbers,'' Mr Vaughan said. "Investors liked what they saw with the profit results and it gave the market some much needed boost.'' Santos closed 18 cents higher at $14.41 after it delivered a significant increase in profit and said it was well placed amid the global economic crisis. Lihir Gold lost 3 cents to $3.53 despite a solid 2008 net profit and saying it expects further improvement in 2009. Mr Vaughan said the financial sector was back in favour. "The finance sector seems to be good value for investors at the moment and despite some reports of increasing provision for bad debts, I don't think that's something to be fearful of.'' Financial stocks were higher at the close. Westpac added 52 cents, to $17.00, ANZ gained 20 cents to $12.60, Commonwealth Bank added 69 cents to $29.85. NAB added 26 cents to $18.40. In the resources sector, Rio Tinto added $1.23 to $51.78, while BHP Billiton dropped 15 cents to $30.16. Gold stocks were lower. Newcrest Mining lost 40 cents to $35.90 and Newmont fell 4 cents to $6.59. The spot price of gold in Sydney was trading at $US978.10 per fine ounce, up $US4.80 on Wednesday's local close of $US973.30. The major retailers were stronger with Woolworths up 5 cents to $27.50, David Jones adding 6 cents to $2.41 and Wesfarmers adding 79 cents to $17.09. The media sector was mostly weaker. Fairfax Media lost 4.5 cents, or 4.37 per cent, to 98.5 cents, News Corporation (the parent company of the publisher of news.com.au) fell 5 cents to $10.50. Consolidated Media added 7 cents to $1.89. Ten Network plunged 13 cents, or 13.98 per cent, to 80 cents on its failed $90 million capital raising. The raising had a floor price of 75 cents per share. On the Sydney Futures Exchange, the March share price index contract was 32 points higher at 3409 on a volume of 30,310 contracts.

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