The FTSE 100 Index remained in positive territory for the seventh straight session today, but stocks trod water as US markets remained shut for the Labor Day holiday.

Australian share prices closed higher with solid gains by News Corp, resources and banking sector. The All Ordinaries index was up 26.5 points at 2,987.2.

Share prices were sharply higher in midday trade following a rebound on Wall Street overnight on speculation about the possibility of a further US Fed interest rate cut this year, dealers said.

Singapore Telecommunications has won a bidding battle to buy Cable & Wireless Optus, a subsidiary of Britain's Cable & Wireless and Australia's second biggest phone company.

Vodafone is telling Australian regulators it will transfer some customers to a competitor as part of its bid to acquire Cable & Wireless Optus.