Banks and insurers lead market higher

The share market has closed higher as the big banks continued their strong run, despite a fall in profit for National Australia Bank.

The US Federal Reserve's decision to end its quantitative easing stimulus measure was not well received on Wall Street, but the opposite occurred on the local market, City Index senior market analyst Kara Ordway said.

"That Fed meeting was a fairly kind of feel-good signal to the market despite US equities being largely flat," she said.

"Really, it's just high-yielding stocks once again that are benefiting."

NAB's annual cash profit fell by nearly 10 per cent to $5.18 billion, as it had previously forecast, and the bank confirmed plans to exit its troubled UK operations.

NAB shares gained 26 cents to $34.64, Commonwealth Bank added 59 cents to $80.17, Westpac lifted 29 cents to $34.46 and ANZ was 33 cents higher at $33.26.

ANZ and Westpac will publish their financial results in coming days, and the market expects better numbers from them, Ms Ordway said.

Insurers also drove the market higher, after Insurance Australia Group said it was on track to meet its forecasts after a strong first quarter of the financial year.

IAG added 16 cents to $6.45, AMP gained nine cents to $5.74, Suncorp lifted 12 cents to $14.44 and QBE was 23 cents higher at $11.53.

Mining stocks fell after terms of trade figures for the September quarter showed a sharper decline in export prices, stirring more concerns about China, Ms Ordway said.

BHP Billiton dropped 23 cents to $33.55, Rio Tinto lost 35 cents to $59.30 and Fortescue Metals was one cent weaker at $3.44.

Coles owner Wesfarmers gained 57 cents to $43.92 after forecasting continuing sales growth in most of its retail businesses, while Woolworths was 22 cents higher at $35.72.

Casino operator Echo Entertainment added 22 cents to $3.76 after forecasting a rise in half year earnings of up to 31 per cent.

KEY FACTS

• At 1615 AEDT on Thursday, the benchmark S&P/ASX200 index was up 28.5 points, or 0.52 per cent, at 5,476.2 points.

• The broader All Ordinaries index was up 26 points, or 0.48 per cent, at 5,457.1 points.

• The December share price index futures contract was up 27 points at 5,456 points, with 19,877 contracts traded.

• National turnover was 2.1 billion securities worth $5.2 billion.