Sharemarket closes at two-and-a-half-year high

THE share market closed at a two-and-a-half-year high today, driven by signs of recovery in the U.S. economy and positive business performance reports.

The benchmark S & P/ASX200 index 8.2 points, or 0.17 percent, rose to 4938.4 points.

The broader All Ordinaries index had added 7.4 points, or 0.15 percent, at 5026.0 points, its highest close since late August 2008.

On the ASX in 1924, the March share price index futures contract was up two points in 4914, with 22,200 contracts traded.

IG Markets analyst Cameron Peacock said investors seemed reluctant to sell the stock, believing that too much more upside in the market today.

"For the last 12 months you always respect the European debt rises, China fall from a cliff, and questions about whether the U.S. will raise tariffs was. All these issues are relatively dormant at the moment," Mr. Peacock said.

"There's nothing really on investors right now.

"People are focused on a global growth story. You really had strong corporate earnings and you'll see continued improvement in the economic data from the U.S., from Europe, from the United Kingdom.

"The glass is half full as opposed to half empty."

National carrier Qantas was one of the best performing stocks. The 13 cents, or 5.44 percent, jumped $ 2.52, after identifying a double-digit growth in capacity and placing a four-fold lift in first half net profit.

Airline Virgin Blue Holdings nudged up one cent to 40 cents as it said it would raise fuel surcharge for flights to the United States and lift luggage.

Coles owner Wesfarmers nine cents to $ 34.25, despite a first half profit up 33 percent.

Property developer Lend Lease was 18 cents richer at $ 9.06 after it said it plans to roll out a single global brand strategy and expects a positive full year financial results.

AMP Asset five cents advanced to $ 5.50 after increasing the full year profits by five percent.

Oil and gas producer Santos rose 44 cents to $ 14.24, after a 15.2 percent increase in full year net profit on higher prices for fuels.

Among the major banks, Westpac was down five cents to $ 24.29, Commonwealth Bank rose 15 cents to $ 53.99, ANZ dipped six cents to $ 25.65 and National Australia Bank gained nine cents to $ 26.42 .

Mining giant BHP Billiton rose five cents to $ 46.64, and Rio Tinto dumped 51 cents to $ 87.65.

The top traded stock by volume was Zambezi Resources, with 118.5 million shares changing hands at a value of $ 5.1 million after the company yesterday announced results of test drilling at its Kangaluwi project in Zambia.

Zambezi shares were 0.5 cents lower at 4.1 cents.

National turnover was 3.2 billion shares worth 5.15 billion U.S. dollars, with 616 stocks up, 581 down and 384 unchanged.

On Wall Street overnight, the Dow Jones Industrial Average index 61.53 points, or 0.5 percent, rose to 12,288.17 points.