Local trade pulled back a bit after a positive open following news from the US that a $US700 billion ($841.25 billion) financial rescue plan may be in doubt, CommSec market analyst Juliette Saly said.
At 12.01pm (AEST), the benchmark S&P/ASX200 index was up 22.6 points, or 0.46 per cent, at 4950 points, while the broader All Ordinaries index had gained 19.4 points, or 0.39 per cent, to 4980.2.
At 12.03pm AEST, the December share price index futures contract was down three points to 4991 on a volume of 14,418 contracts.
"The market is generally higher but of course the fact that the rescue plan on Wall Street may have hit another stumbling block has seen local investors pull out a little bit after starting up by about one per cent on open,'' Ms Saly said.
"Most of the banks are doing well and the financial sector is up about half a per cent."
At 12.04pm AEST, Commonwealth Bank was up 55 cents, or 1.25 per cent, to $44.60, National Australia Bank had gained 34 cents, or 1.36 per cent, to $25.33, ANZ had risen 17 cents, or 0.97 per cent, to $18.70 and Westpac had added nine cents, or 0.38 per cent, to $23.95.
Macquarie Group was down 63 cents to $38.62 at 12.05pm AEST after announcing plans to sell its investment lending business in Australia.
Ms Saly said Babcock & Brown was a stand-out performer, up 25 per cent on open. At 12.06pm AEST, it was 15 cents, or 6.33 per cent stronger at $2.52.
"The materials sector is one of the drags on the market today, down about a third of one per cent," she said.
"The information technology sector is also down by about one per cent, utilities are off by about half a per cent and the property trust sector is also weaker.
"Consumer staples is the best sector, up by more than two per cent."
The big diversified miners were mixed at 12.06pm AEST, with BHP Billiton down four cents to $36.36, while its takeover target Rio Tinto was up 62 cents to $102.48.
Japanese oil and gas giant Inpex has chosen Darwin over Western Australia to build a $12 billion liquefied natural gas plant.
Perth Crude oil prices rose on Thursday, but energy stocks were weaker at 12.08pm AEST.
Woodside Petroleum had slipped 13 cents to $57.19, Santos had lost 12 cents to $20.08 and Oil Search had shed nine cents to $5.73.
Newcrest was up 49 cents, or 1.78 per cent, at $27.95, Newmont had dropped 15 cents, or 2.97 per cent, to $4.90 and Lihir Gold had fallen four cents, or 1.43 per cent, to $2.76.
Making headlines today, Foster's Group rallied on news it had elevated acting chief executive Ian Johnston to head of the company, following the departure of Trevor O'Hoy.
"He's been doing the job since July and it is hoped he will give a bit more direction to Foster's struggling wine business," Ms Saly said.
"There is also talk Deutsche Bank may be interested in taking over the brewer.
"It's bought a 5.3 per cent stake in Foster's."
At 12.15pm AEST, shares in Foster's had gained 31 cents, or 5.79 per cent, to $5.66.
In retail at 12.18pm (AEST), Woolworths added 43 cents, or 1.54 per cent, to $28.33, Coles owner Wesfarmers was up 38 cents, or 1.12 per cent, at $29.80, David Jones had fallen 18 cents to $4.40 and Harvey Norman had added 10 cents to $3.60.
At 12.20pm AEST, the most traded stock by volume was Telstra, with 31.89 million units changing hands worth $141.73 million.
Its shares had risen three cents to $4.23 at 12.21pm AEST.
Market turnover was 702.46 million shares, valued at $4.22 billion, with 396 stocks up, 427 down and 241 unchanged.
Base metal prices were modestly higher on the London Metal Exchange overnight but nickel and gold fell slightly.
At 12.09pm AEST, spot gold was trading in Sydney at $US877.00 an ounce, down $US14.70 on yesterday's close of $US891.70.
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