8:00 PM Sydney – Australian stocks extended gains for the second day and resource stocks and banks led the advance. Woodside Petroleum said it is looking to sell a stake in its Western Australia based natural gas basin.

Australian stocks advanced for the second day in a row after struggling for the last two days and gained for the four weeks in a row.

Market sentiment was positive after the U.S. Federal Reserve left its key lending rate near zero and extended the low interest outlook to “late 2014” and released forecast for unemployment, inflation and GDP outlook for the next three years.

The ASX 200 index increased 17.1 or 0.4% to 4,288.4 and All Ordinaries index rose 19.40 to 4,348.50. For the week, the ASX gained 2.2% and for the year so far the index added 5.7%.

The Australian dollar declined in trading but jumped back above $1.05 after the release of the inflation data.

In trading, turnover declined to 1.7 million shares worth $4.5 billion and of the shares traded 569 increased, 435 decreased and 381 closed unchanged.

Stock Movers

BHP Billiton Ltd rose 24 cents to $37.66 and Rio Tinto Ltd closed up $1.43 to $69.78.

Fortescue Metals Group increased 20 cents to $5.06, Lynas Corporation Limited closed lower 6 cents at $1.28 and Iluka Resources increased $0.70 to $18.70. Newcrest Mining rose $1.25 to $34.40.

Oil Search Limited traded down 28 cents to $6.59, Santos Limited closed down 15 cents at $13.48 and Woodside Petroleum increased 51 cents to $34.48 after the company said it is looking to sell a stake in its Browse liquefied natural gas project in Western Australia.

Commonwealth Bank of Australia increased 16 cents to $51.16 and ANZ increased 8 cents to $21.50 and Westpac inched lower 1 cent to $21.29. National Australia Bank fell 12 cents to $24.08.

David Jones Limited decreased 1 cent to $2.37 and Wesfarmers Limited decreased 5 cents to $30.33. Harvey Norman Holdings closed down 3 cents $2.00.

Woolworths Limited closed down 14 cents to $24.77 and JB Hi-Fi Limited decreased 12 cents to $11.57. Billabong International Ltd closed flat to $1.88 and Kathmandu closed unchanged at $1.23.

Qantas Airways Ltd was flat at $1.60, Virgin Australia closed up 0.5 cent to 32 cents and Flight Centre declined 32 cents to $19.12.

QR National closed up 2 cents at $3.69.