The Australian share market closed marginally higher on thin trading volumes as investors switched out of Rio Tinto into the energy sector. The benchmark S&P/ASX200 index was up 9.1 points, or 0.19 per cent, at 4,872.2 points, while the broader All Ordinaries index added 12.4 points, or 0.25 per cent, to 4,890.1 points. Westpac rose 13 cents to $27.43, National Australia Bank gained 15 cents to $26.90 and ANZ firmed 23 cents to $25.11. The major miners were mixed, with BHP Billiton gaining four cents to $43.20 and Rio Tinto dropping 80 cents, or 1.04 per cent, to $76.19. Rio Tinto has struck a deal with Aluminum Corporation of China (Chinalco) to develop the Simandou iron ore project in west Africa. Energy stocks were higher despite a lower oil price overnight and in electronic trading on Friday. Oil Search was three cents stronger at $5.90, Woodside put on 48 cents, or 1.04 per cent, to $46.73 and Santos was up three cents to $14.25.

Making headlines on Friday, Telstra said there was a significant gap between it and NBN Co on the proposed financial outcome of the planned national broadband network. Telstra shares were steady at $3.17. Telstra shares are holding fairly steady in a range from $3.16 to $3.19 - a very tight range. Packaging group Amcor rejected a damages estimation from an expert retained by claimants in a class action against Amcor over alleged price-fixing. Shares in Amcor found three cents to $6.11. The spot price of gold in Sydney at was $1,124.00 per fine ounce, up 50 US cents from Thursday's close of $1,123.50 per fine ounce. Lihir Gold firmed five cents to $3.20 and Newcrest fell 28 cents to $33.69.

In the retail space, Myer Holdings slumped 14 cents, or 3.99 per cent, to $3.37 after it paid a dividend. Myer's rival, David Jones, backtracked 17 cents, or 3.34 per cent, to $4.92 after receiving mixed broker recommendations. Coles owner Wesfarmers was up 69 cents, or 2.22 per cent, to $31.80 and Woolworths inched two cents higher to $28.78 Apex Minerals was the top traded stock by volume, with 119.5 million shares worth $3.51 million changing hands   Shares in the base and precious metals explorer rose 0.2 cents, or 7.41 per cent, to 2.9 cents. Preliminary market turnover reached 2.85 billion shares, worth $5.45 billion, with 610 stocks up, 448 down and 377 steady.

The Australian dollar was weaker in Asia on Friday while bonds also lost ground in thin trading conditions as offshore events remain the main drivers. Another thin week ahead for domestic data means global economic data and newsflow will steer Australia's currency and bonds, although two speeches by Reserve Bank of Australia officials will also be watched closely. The Australian dollar was quoted at $0.9191, down from $0.9213 late Wednesday. Against the Japanese yen, the Australian dollar was at 83.04, down from 83.05.