Resources gains lead market higher

The Australian share market has surged by 1 per cent after energy stocks were boosted by higher oil prices.

The All Ordinaries Index added 55 points to 5,465 and the ASX 200 picked up 58 points to 5,400.

Resource company Woodside Petroleum closed 2.7 per cent higher on rising oil prices.

Supply concerns sent the price of oil above $US112 a barrel.

Shortly before 5:45pm AEST, a barrel of West Texas crude oil was $US111.71 and spot gold was fetching $US928 an ounce.

Oil Search says it is selling its Middle East and African assets for $US200 million to concentrate on a liquefied natural gas project in Papua New Guinea.

Oil search closed 4.6 per cent higher at $4.99.

It was a mixed result for the major banks, with the Commonwealth Bank adding 2.7 per cent, while ANZ lost 5 cents to $20.40.

Macquarie Group added $2.84 cents to $55.94.

Home and car insurer IAG soared by about 8.5 per cent after rejecting a takeover proposal from its rival QBE.

The $7.3 billion offer was deemed too low by the IAG board. IAG closed 33 cents higher at $4.19 and QBE lost 30 cents to $22.90.

Telstra has shed 2 cents to $4.51, after today being given permission by the Federal Government to close its old CDMA mobile phone network.

Shortly before 5:45pm AEST, the Australian dollar was buying 92.89 US cents , 47 UK pence, 93 Japanese yen and 47 British pence.