THE Australian share market was buoyant in morning trade after stronger-than-expected sales figures from Wesfarmers and rises in banking shares.
Following a strong finish last week on Wall Street, at 12pm (AEST) Australia's benchmark S&P/ASX200 index was up 42.5 points, or 0.95 per cent, at 4,500.9 points, while the broader All Ordinaries index had risen 42.1 points, or 0.94 per cent, to 4,517.2 points.
On the Sydney Futures Exchange, the September share price index contract was 44 points higher at 4,480 on a volume of 13,069.
Retailer Wesfarmers had risen $1.01, or 3.47 per cent, at $30.15 after it lifted sales by 4.3 per cent at its Coles supermarket business.
CommSec market analyst Juliette Saly said it marked a turnaround in Wesfarmers' supermarket division.
"The comparative period for this time last year was when the government had given everyone stimulus cheques, so it is really positive they have done well," Ms Saly said.
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"They have also trumped their rival Woolworths in annual sales," she said.
Banks were also stronger and at 12:07 with National Australia Bank had lifted 52c at $24.89 while Commonwealth Bank rose 37c at $51.61 and Westpac gained 39c at $23.12.
ANZ was up 34c at $22.75 and Macquarie Group put on 32c at $39.75.
But QBE Insurance Group was hit after it revealed its first half profit was expected to be down 40 per cent on the same period last year.
At 12:10 shares in the insurer were down 94c, or 5.23 per cent, at $17.03.
Ms Saly said the financials were pushed higher after results of European stress tests on banks.
"Those were not as ugly as feared, and the seven that failed the tests were small names people weren't that concerned about," she said.
At 12:15 market heavyweight BHP Billiton was up 30c at $39.98 while rival Rio Tinto had risen 68c at $70.54.
Gold miner Newcrest had put on 12c at $33.34 while the company it is seeking to take over, Lihir Gold was steady at $4.11.
At 12:21 the spot price of gold was $US1,191.50 per fine ounce, down a little from Friday's closing price of $US1,196.13 per ounce.
Energy stocks were mostly higher at 12:22, with Woodside Petroleum up 49c at $42.41 and rival Oil Search steady at $5.90.
Gas giant Santos rose 7c to $13.91 while Origin put on 12c to $15.66.
Ms Saly said new Producer Price Index (PPI) figures were also a little lower than expectations, going some way to ease inflation fears.
"There is not too much to worry about there, although it will all come down to the core inflation number coming out on Wednesday," she said.
Apart from standout Wesfarmers, the retail stocks put on modest gains, with Woolworths up 44c at $26.11 at 1228 AEST and Myer Holdings edging 1c higher to $3.48
Harvey Norman rose 4c to $3.69.
Media stocks were mostly caught up in the day's positive momentum, with News Corp up 11c at $16.71 at 12:32 and the company's non-voting scrip 17c stronger at $14.77.
Fairfax had risen 2.5c to $1.50 but Consolidated Media bucked the trend to edge down 2c at $3.12.
The highest rising stock on the market at 12:36 was KTL Technologies Ltd, after it announced a patent licence and distribution agreement with a Chinese company.
Its shares were up 0.2c, or 66.67 per cent, at 0.5c.
Market turnover was 961 million shares worth $2.19 billion, with 565 stocks up, 307 down and 299 unchanged.
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