THE share market was trading over 1 per cent higher at noon (AEDT), with all sectors making gains as investors regarded the worst of the Queensland floods crisis to have passed.
At midday, the benchmark S&P/ASX200 index was 60.1 points higher, or 1.27 per cent, at 4784.3 points, while the broader All Ordinaries index climbed 58.6 points, or 1.21 per cent, to 4890.5 points.
On the ASX 24, the March share price index futures contract was up 59 points at 4773 points, with 15,729 contracts traded.
Australian Stock Report's head of research, Geoff Saffer, said investors were buying up stocks on the expectation the worst of the Queensland flood crisis is over.
"The Brisbane river peaked at a lower level than expected so there is hope that the worst is behind us," Mr Saffer said.
"There is hope that the damage from the floods is close to as bad as it's going to get and people are happy to pile back into the market."
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Strong gains in agricultural commodities prices and foreign banks' share prices overnight also gave the local market a strong lead, Mr Saffer said.
The CRB Index, which tracks commodities prices, hit its highest level in 27 months overnight on strong performances in the prices of soy beans, corn, and wheat, and a fall in the US dollar.
"Agricultural commodities really drove things last night as a result of supply shortages partly impacted by the floods in Queensland," Mr Saffer said.
"Cotton hit a record high and wheat has made a big move, and copper is holding up very well.
"Our big miners are leading the way (today) but there is really strength across the board."
Materials heavyweight Rio Tinto led the market, gaining $1.94 or 2.28 per cent, to $87.13, while BHP Billiton gained 78 cents, or 1.73 per cent, to $45.98.
By 12.11pm, shares in Santos emerged from a trading halt to surge 30c, or 2.28 per cent, to $13.46 after the oil major, with its Gladstone Liquefied Natural Gas (GLNG) partners, approved the development of the $US16 billion ($16.11 billion) project in Queensland.
Oil Search fell 6c to $6.94 and Woodside Petroleum was off 2c at $43.56.
Banks and financials made broad-based gains, with the big four banks adding over one per cent and Brisbane-based Bank of Queensland (BOQ) rebounding from losses earlier this week.
BOQ lifted 25c, or 2.6 per cent, to $9.85.
Insurer Suncorp Group Ltd continued today's rally, adding 5c to $8.34, while Australia's biggest insurer, QBE Insurance Group jumped 30c, or 1.65 per cent, to $18.45.
Insurance Australia Group put on 6c, or 1.6 per cent to $3.80 after announcing it had received 1200 claims from rains associated with Cycline Tasha in December, and around another 2400 claims so far from the Queensland floods.
IAG said this would drive its total natural peril claim cost for the six months to December 31, 2010, to between $120 million and $140 million, while it was impossible yet to assess the impact of the claims in January.
Retailers advanced, too, with discounter JB Hi-Fi jumping 61c, or 3.34 per cent, to $18.86, while Harvey Norman was up 7c, or 2.37 per cent, at $3.02.
CS Week conference group donates $60,000 to flood reliefShare market closes 2010 lower
