The Australian stock market was higher at midday thanks to gains in the mining sector.

At noon east-coast time, the benchmark S&P/ASX200 index had gone up 14.8 points, or 0.34 per cent, at 4415.7 points. The broader All Ordinaries index climbed 16.7 points or 0.38 per cent to 4439.1 points.

On a sector-by-sector basis, materials shares gained 1.52 per cent, energy improved 0.52 per cent and consumer staples saw 0.26 per cent improvement.

Telstra shares slumped to a record low, compounding to a near 10 per cent loss yesterday after a disappointing full-year result. This contributed significantly in the telecom sub-index losing 1.72 per cent.

The telco giant's stocks were down 5 cents at $2.89, despite announcing today it had signed a deal to offload its stake in a Chinese real property website for about 63 per cent more than the purchase price four years ago.

On the Sydney Futures Exchange at midday, the September share price index contract was 26 points stronger at 4383 points, with 17,697 contracts traded.

Burrell Stockbroking director Richard Herring said mining and banking gains are buoying up the local market.

''Miners have been quite firm, which has been encouraging for our market... and the banks seem to have stemmed their losses from previous days. Telstra is still a bit problematic after a poor update to the market yesterday.

''The big miners and the banks are really what is driving the index at the moment, they're all a touch to the upside today,'' Mr Herring said.

Of the major players, BHP Billiton added 51 cents at $40.15, Rio Tinto increased $1.14 at $70.96 and Fortescue Metals gained 6 cents at $4.38.

Shares in Equinox Minerals climbed 33 cents or 6.83 per cent at $5.16 after the Africa-focused miner reported a return to profit, with stronger copper production and lower expenditures in the first half of 2010.

Among the large banks, Commonwealth climbed 32 cents at $51.02. Westpac gained 2 cents at $22.23, while National Australia Bank lost 21 cents at $23.53 and ANZ shed 12 cents at $21.98.

Yesterday, Australian stocks slumped for the third straight day on investor concern over a weaker global economic outlook.
The benchmark S&P/ASX200 index finished 54.6 points or 1.23 per cent weaker, at 4400.9 points. The broader All Ordinaries index, meanwhile, closed 57.3 points or 1.28 per cent lower to 4422.4 points.