A SURGE in job advertisements and improving business confidence data boosted the Australian sharemarket today.

The benchmark S&P/ASX 200 rose for the eighth consecutive day, closing higher by 12.2 points, or 0.3 per cent, at 4820.1 on light share-trading volumes, after an extremely quiet night on Wall Street.

The index bounced from 4791.1 to 4828.1 as confidence in the domestic economy was bolstered by economic data. ANZ Bank said job advertisements surged 19.1 per cent in February from January and National Australia Bank said its business confidence index rose 4 points to plus 19 points in February from January.

But the index failed to break through the seven-week high of 4828.5 struck yesterday.

“The domestic situation looks good in isolation,” said Wesley Legrand at Grand Private Equities. “But we have to see what global influences come to bear.” Mr Legrand remains concerned about the level of sovereign debt in Europe.

Financials accounted for much of the market’s strength, with National Australia Bank rising 2.1 per cent to $26.87 amid ongoing speculation about the outcome of the Australian Competition and Consumer Commission review of its bid for AXA Asia Pacific Holdings, which is due on March 17.

Commonwealth Bank of Australia rose 0.7 per cent to $55.21, Westpac gained 0.5 per cent to $26.97 and QBE Insurance added 2.1 per cent to $21.10.

In healthcare, CSL rose 0.8 per cent to $36.21 despite going ex-dividend by 35c.

The energy sector remained active, albeit restrained by profit-taking after surging yesterday when Royal Dutch Shell and PetroChina launched a takeover bid for Arrow Energy.

Arrow fell 1.8 per cent to $5.02, Woodside lost 3c to $45.22 and Santos rose 1.8 per cent to $14.08.

Materials also saw profit-taking, with BHP down 0.3 per cent to $43.40 and Rio Tinto down 1 per cent at $76.15.

UBS head of sales George Kanaan, said the market wants more confirmation of a US economic recovery and successful management of excessive growth in China. But he noted bullish signs including increased takeover activity.

“You are starting to see M&A and balance sheets are relatively ungeared in Australia,” he said. “I see this market holding ground, then going higher. Europe is still the main concern, but in the past week or so, people are a little happier to take on risk.”

Major energy stocks ended mostly higher, with gas giant Santos adding 25c to $14.08 and Origin Energy up 8c to $16.94.

Oil Search put on 7c to $5.64 but rival Woodside Petroleum fell 3c to $45.22.

CBD Energy rose 0.5c (4.76 per cent) to 11c, after subsidiary eco-Kinetics won a two-year contract with Queensland electricity utility Ergon Energy.

Among the gold miners, Lihir lost 5c to $2.89 and Newcrest dropped 4c to $34.30.

The local spot price of gold was $US1120.80 per fine ounce, down $US14.73 on yesterday’s closing price.

Online gaming firm Centrebet International jumped 17c (10.43 per cent) to $1.80 after it said it was “facilitating discussions” with organisations that had expressed an interest in taking over the company.

(www.theaustralian.com.au)