THE Australian stock market was higher at noon on resources and financials, with QBE Insurance Group shares higher after a number of announcements to the market.
At noon (AEDT), the benchmark S&P/ASX200 index was up 42.6 points, or 0.88 per cent, at 4863.2 while the broader All Ordinaries index had risen 40.7 points, or 0.83 per cent, to 4960 points.
On the ASX 24, the March share price index futures contract was 53 points higher at 4,836, with 14,934 contracts traded.
QBE Insurance Group was the highest trading stock by value at noon, with 15.64 million shares changing hands for $278.92 million.
The company announced it had entered into a 10-year distribution agreement with Bank of America and also said insurance profit margins for 2010 will be lower than previously forecast, and will be at a similar level in 2011.
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QBE was the best performing stock on the S&P/ASX100 with its shares up $1.23, or 7.26 per cent, at $18.17.
Shaw Stockbroking senior dealer Jamie Spiteri said the smaller than expected impact of Cyclone Yasi on northern Queensland was also contributing to the performance of the insurer.
"(Also) its update this morning relieved the market of the uncertainty about the prospect of them having to do equity capital raising to facilitate the US insurance purchase."
Mr Spiteri said the market overall was being pushed higher by gains in its largest sectors.
"The resources sector continues to be quite strong but on top of that, the banking sector which has been relatively flat in recent times has attracted some support here," he said.
Resources were higher at noon.
BHP Billiton was up 44 cents at $46.76, Rio Tinto had risen 49 cents to $86.69 and Fortescue Metals was up 10 cents, or 1.51 per cent, at $6.73.
The major banks were also stronger.
National Australia Bank was up 33 cents, or 1.34 per cent, at $24.97, ANZ climbed 18 cents to $24.12, Commonwealth Bank was 50 cents higher at $53.09 and Westpac had risen six cents to $23.34.
In other news, the Reserve Bank (RBA) announced the Australian economy is expected to fully recover from the shock of the Queensland floods by the second half of 2011, as coal production in the Sunshine State recovers.
Airport owner MAp Group says its Brussels Airport reported a 6.7 per cent lift in earnings for calendar 2010 on flat revenues.
MAp was up one cent at $3.01.
Meanwhile Crane Group has released a target's statement and independent expert report advising shareholders to accept a revised cash and script takeover offer from Fletcher Building.
Crane was up six cents at $10.06 while Fletcher was up three cents at $6.09.
The spot price of gold in Sydney was $US1351.70 per ounce, up $US18.88 from yesterday's closing price of $US1332.82.
Gold miner Newcrest was up 89 cents, or 2.41 per cent, at $37.75 after gold rose over one per cent in volatile trade overnight.
The most traded stock by volume at 12.20pm (AEDT) was telecom company Telstra, with 55.63 million securities changing hands at a total value of $158.14 million.
Telstra's shares were up seven cents, or 2.51 per cent, to $2.86.
National turnover was 1.52 billion securities for $2.51 billion, with 657 stocks up, 335 down and 386 were unchanged.
GM raises share priceShares higher at noon
