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US gains lead Aust share market higher

Trevor Chappell

The Australian share market has closed modestly higher after the S&P 500 index in the United States finished above 2,000 points for the first time, helped by more encouraging data on the US economy.

100 Doors managing partner Peter Esho said positive sentiment from the S&P 500 being at an all-time high had flowed through to the local bourse.

"That's a major stimulatory element, I think, so our market is grinding higher," Mr Esho said.

"Along with that, reporting season (company financial results) has been positive on balance, so there's no real reasons to be negative."

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Mr Esho said, however, that overall market gains on Wednesday were slight given that the soft iron ore price was still weighing upon the big miners and constraining any share price increases.

In the resources sector, global miner BHP Billiton was up 11 cents at $37.33, Rio Tinto firmed two cents to $64.13, and Fortescue Metals improved three cents to $4.31.

Among the major banks, Commonwealth Bank rose 38 cents to $81.12, Westpac gained 21 cents at $35.12, ANZ lifted 24 cents to $33.54, and National Australia Bank was 24 cents richer at $34.80.

Telstra, which traded ex-dividend on Wednesday, was down 21 cents, or 3.66 per cent, at $5.53.

Seven West Media was 3.5 cents lower at $1.985. It posted a $149.2 million profit for 2013/14 helped by cost cuts and improved television earnings, which helped it turn around its $70 million loss a year earlier.

Kerry Stokes-led Seven Group Holdings dropped four cents to $7.53, after falling commodities prices hammered its annual profit, which fell 46 per cent to $261.1 million.

Building products maker Boral jumped 24 cents to $5.63 after returning to profitability.