Resources propel Australian share market at midday
The Australian share market was higher by noon, boosted by a rally in the resources sector and optimism that the US Federal Reserve could give more stimuli to the economy after weak jobs data.
At midday east-coast time, the benchmark S&P/ASX200 Index had gained 10.1 points or up 0.22 per cent, at 4576.2 points. The broader All Ordinaries Index was 11.5 points or 0.25 per cent stronger to 4597.8 points.
On a sector-by-sector basis, materials was leading, climbing by 0.68 per cent, followed by consumer staples and telecoms, increasing 0.54 and 0.47 per cent, respectively. Information technology was weakest, falling 0.55 per cent.
On the Sydney Futures Exchange, the September share price index contract climed 16 points at 4545 points, with 20,087 contracts traded.
A key reason for the rally in trading had been the statement of global miner Rio Tinto, according to Australian Stock Report resources analyst Stan Shamu.
''One of the main reasons for the miners being stronger was Rio Tinto coming out and saying they are comfortable with the revised resource rent tax,'' Mr Shamu said.
''That has been a massive boost for the miners.''
Shares in Rio Tinto were 39 cents stronger at $73.59.
BHP Billiton had added 21 cents to $41.34. Fortescue gained 13 cents, up 2.9 per cent, at $4.62.
Meanwhile, the four major banks were mixed.
NAB fell 19 cents at $24.84 and CBA increased 22 cents to $52.81. Westpac edged up 1 cent at $23.63, while ANZ had slid 9 cents to $22.96.
Job ads data released today also had a positive effect on the market, Mr Shamu said.
''That (jobs data) is a good inflation indicator,'' he said.
''If inflation is low that could leave rates on hold.''