July 17 (Bloomberg) -- Australian banking stocks rose, led by National Australia Bank Ltd. and Commonwealth Bank of Australia. Woodside Petroleum Ltd. and Santos Ltd. led energy stocks lower after gasoline prices posted the biggest drop since October.

``There's been a temporary flight out of resources into banks,'' said Atul Lele, who helps manage the equivalent of $380 million at White Funds Management in Sydney. ``The decline in gasoline and other associated products had flow-on affects to energy-related stocks here.''

Paladin Resources Ltd. rose after the Australian Financial Review reported the uranium explorer may be the subject of a bid from Canadian rival Cameco Corp. Paladin denied the report.

The S&P/ASX 200 Index added 0.8 point to 6381.60 at the close in Sydney. A group of financial stocks in the index added 0.3 percent, while energy shares fell 0.5 percent.

National Australia, the nation's biggest lender, added 25 cents, or 0.6 percent, to A$40.08. Commonwealth, the second biggest, rose 60 cents, or 1.1 percent, to A$55.95.

Macquarie Bank Ltd. Australia's largest investment bank, gained 87 cents, or 1 percent, to A$92.22. Macquarie may announce a profit upgrade at its July 19 annual general meeting, commentator Marcus Padley, author of trading newsletter Marcus Today, wrote in the publication yesterday.

Woodside, Australia's second-largest oil and gas producer dropped 17 cents, or 0.4 percent, to A$46.54. Santos, the third- largest, lost 10 cents, or 0.7 percent, to A$14.00.

Lower Gasoline

Gasoline plunged 4.4 percent on anticipation a U.S. Energy Department report tomorrow will show gasoline stockpiles rose by 1 million barrels last week, according to the median estimate of a Bloomberg News survey of 15 analysts. Crude oil for August delivery was recently at $74.05 a barrel, down 10 cents, in after- hours electronic trading on the New York Mercantile Exchange.

Paladin added 24 cents, or 2.9 percent, to A$8.52. Saskatoon, Canada-based Cameco, the world's largest uranium producer, may be interested in buying Paladin to make up for the delayed uranium output from its own mines in Canada, the Financial Review reported, citing speculation in Canada and Australia.

The company hasn't received a takeover approach, Perth-based Paladin said in a statement today, in response to the report.

Paladin shares have soared 6,514 percent in the past three years, making them the second-best performers among the 1,879 stocks included in Morgan Stanley Capital International's World Index. Fortescue Metals Group Ltd., building an iron ore mine in Western Australia, is the biggest gainer on the index over that period, having jumped 10,719 percent.

The S&P/ASX 200 Index's futures contract for September gained 0.2 point to 6385. The broader All Ordinaries Index lost 0.2 point to 6418.20.

The following shares also rose or fell. The stock symbols are in brackets after the company names.

Boom Logistics Ltd. (BOL AU), an Australian crane hire and lifting services company, lost 33 cents, or 9.5 percent, to A$3.15, the biggest decline on the S&P/ASX 200 index. Boom said its net operating profit will be A$36 million to A$37 million this year and that the result was affected by the extreme weather the nation's central eastern coast experienced this year.

Consolidated Minerals Ltd. (CSM AU), a Perth-based manganese producer, lost 10 cents, or 2.9 percent, to A$3.35. Territory Resources Ltd., backed by Hong Kong's Noble Group Ltd., made a takeover bid for Consolidated Minerals to control 10 percent of the world's high grade manganese supply.

The bid values Consolidated Minerals at A$966 million ($843 million), Perth-based Territory said today in a statement to the Australian Stock Exchange.

Dioro Exploration NL (DIO AU), a gold exploration company based in Western Australia state, gained 0.05 cent, or 3.1 percent, to 17 cents. Cia. Vale do Rio Doce, the world's biggest iron ore producer, agreed to explore for uranium in Western Australia state with Dioro. Vale signed an accord to spend A$4 million over four years to earn 60 percent of the uranium rights in Dioro's Kunderong and Kennedy projects.

Energy Resources of Australia Ltd. (ERA AU), which produces more than a tenth of the world's mined uranium supply, declined 61 cents, or 3 percent, to A$20.10. The miner said second-quarter production more than doubled from a year earlier when output was more severely affected by heavy rainfall. ERA added its sales contracts will still be subject to force majeure, a legal clause allowing a company to miss contracted deliveries due to circumstances beyond their control, as a result of the flooding.

Futuris Corp. (FCL AU), owner of the world's largest wool broker, fell 18 cents, or 6.8 percent, to A$2.45. Greg Hunt stepped down as managing director of Futuris's Elders rural unit after holding the position for five years, FarmOnline said without saying where it got the information.

Leighton Holdings Inc. (LEI AU), Australia's biggest builder, added A$1.14, or 2.7 percent, to A$44.09. Leighton has been awarded a new $125 million three-year contract extension on its coal mine project in Indonesia. The company already has two mining projects in Indonesia worth almost $700 million, it said in a statement yesterday.

Newcrest Mining Ltd. (NCM AU), Australia's largest gold mining company, lost 31 cents, or 1.3 percent, to A$24.35. Gold prices fell in New York on speculation the euro's rally against the dollar will stall, reducing the appeal of the precious metal as an alternative investment. Gold futures for August delivery fell 20 cents to $666.10 an ounce on the Comex division of the New York Mercantile Exchange.

News Corp. (NWS/A US), the media company run by Rupert Murdoch, gained 27 cents, or 1 percent, to A$27.55. The company has reached a tentative agreement to buy Dow Jones & Co. for $5 billion, the Wall Street Journal reported, citing people familiar with the deal. The Dow Jones board will consider the $60-a-share offer at a meeting tomorrow, the newspaper said.

Orica Ltd. (ORI AU), the world's largest explosives maker, added A$1.66, or 5.5 percent, to A$31.70. There is speculation Orica may receive a second takeover offer after it rejected a A$9.95 billion buyout in April, said Albert Landman, who manages more than $70 million at Tricom Futures Services in Melbourne.

Trafalgar Corporate Group (TGP AU), a property developer and real estate investment trust, added 4 cents, or 1.8 percent, to A$2.28. Trafalgar may sell part of a A$500 million waterfront apartment development in Sydney, the Australian Financial Review reported. The company and partner Multiplex Group may seek to sell a large number of apartments at the Rhodes Peninsula project to a single institutional investor, the report said.

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By Emma O'Brien