THE Australian share market closed higher for the second day running, led by gains in the resources sector on the back of higher commodity prices. The benchmark S&P/ASX200 index was up 49 points, or 1.29 per cent, at 3,856, while the broader-based All Ordinaries index was 49.3 points higher, or 1.3 per cent, to 3851.5 points. On the Sydney Futures Exchange, at 1615 AEST the September share price index contract was 56 points higher at 3,825 on a volume of 22,369 contracts. Burrell stockbroking adviser Daniel Manley said the market had finished Thursday with a rally after a fairly sluggish afternoon. "It's been a strong close into the afternoon," Mr Manley told AAP. "It was a pretty strong night with the base metals, and it seems there's been a bit of a delayed reaction." Mr Manley said the standout performers were in the resources sector. Sims Metal Management put on $1.84, or 7.75 per cent, to $25.59, Karoon Gas gained 82 cents, or 11.08 per cent, to $8.22, while Arrow Energy was up 24 cents, or 7.21 per cent, at $3.57. "I think investors are pre-empting another pretty strong night among commodities," Mr Manley said. "There's also been a bit of bargain-hunting after a pretty ordinary week and a bit." BHP Billiton, which observers say may be preparing to offload its mothballed Ravensthorpe nickel project in Western Australia, surged 79 cents to $34.52. Rival Rio Tinto added $2.19, or 4.42 per cent, to close at $51.79.

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