Share market stronger on US rebound

THE share market was stronger at noon, led by energy and mining stocks, while the banking sector rebounded after yesterday's losses. At 12pm (AEST), the benchmark S&P/ASX200 was 48.9 points higher, or 1.02 per cent to 4863.2, while the broader All Ordinaries picked up 47.1 points, or 0.97 per cent to 4918.6.

The September share price index futures contract was up 30 points to 4865, on a volume of 15,182 contracts.

Head dealer with Shaw Stockbroking Jamie Spiteri said the market was still cautious over financial sector uncertainty in the US.

"The gains are nothing too convincing," Mr Spiteri said.

"It's more a fact that the market's been oversold in recent days and there's just a little bit of value buying around the market here, just re-marking the prices a bit better than we saw them depreciate to in recent days.

"Markets are still very cautious and uncertain, predominantly about what's happening in the US."

BHP Billiton jumped 92 cents, or 2.67 per cent to $35.39, while takeover target Rio Tinto rose $2.65, or 2.61 per cent to $104.20.

In the energy sector, Woodside put on $1.05, or 2.02 per cent to $53.13, Santos gained 45 cents, or 2.47 per cent to $18.65, while mid-tier New Guinea producer Oil Search lost 12 cents, or 2.11 per cent to $5.56.

Stocks on Wall Street climbed overnight, as investors snapped up some of the financial sector's stronger players and pumped money into the materials and transportation sectors.

A drop in crude below $US101 a barrel also boosted the market.

The Dow Jones Industrial Average finished up 164.79 points on the day, or 1.46 per cent to 11,433.71, while the broader Standard & Poor's 500 lifted 17.01 points, or 1.38 per cent, to 1,249.05.

The NASDAQ rose 29.52 points, or 1.32 per cent, to 2,258.22.



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Share market rebounds on US rally