The sharemarket closed stronger, up 1 per cent during the day but eased to about 0.5 per cent higher by the finish.

At the close, the benchmark S&P/ASX200 index was up 28.2 points, or 0.54 per cent, at 5209 points.

The broader All Ordinaries index was up 25.6 points, or 0.5 per cent, at 5185.4.

Investors initially took their cues from a positive finish on Wall Street where US stocks posted fresh record highs.

RBS Morgans private client adviser Craig Walker said financial stocks, insurers and property stocks all closed in positive territory.

"The theme which has been driving the market higher - investors looking for dividend-paying stocks - has continued," Mr Walker said.

"Strong US consumer confidence figures have been the main driver."

Banking stocks were mixed, with ANZ down 3c to $30.23, Commonwealth Bank up 28c to $73.49, National Australia Bank up 28c to $33.37 and Westpac up 44c to $31.79.

 Resources stocks were mixed as the gold price continued to wane, with BHP Billion up 38c to $34.79 and Rio Tinto up 13c to $55.42.

Goldminer Newcrest was down 12c to $14.56.

Construction giant Leighton reaffirmed earnings guidance for 2013, with underlying net profit forecast at between $520 million and $600m.

Leighton was up 66c, or 3.66 per cent, to $18.67.

Australia's second-largest telco Optus will expand its latest 4G mobile network to 70 per cent of the country's metropolitan population by the middle of next year.

Its parent company, Singapore Telecommunications, was up 2c to $3.30 in local trading.

The company is listed in both Australia and Singapore.

Meanwhile shares in Santos closed up 21c to $13.14 after the company said oil production had begun ahead of schedule at its $490m Fletcher Finucane project in Western Australia.

On ASX 24, the June share price index futures contract was 25 points higher at 5218 with 23,352 contracts traded.

National turnover was 1.48 billion securities worth $3.6 billion.