THE stock market was stronger at noon on robust performances by financial companies, after Commonwealth Bank posted a better than expected first half cash profit.
At 12pm (AEDT_, the benchmark S&P/ASX200 index was up 13.2 points, or 0.27 per cent, at 4903.6, while the broader All Ordinaries index was up 11 points, or 0.22 per cent, at 4994.1 points.
On the ASX 24, the March share price index futures contract was up six points at 4875, with 16,148 contracts traded.
Commonwealth Bank of Australia beat market forecasts with a $3.335 billion first half cash profit, but says credit demand remains subdued while funding costs are increasing. Its shares were up 95 cents, or 1.76 per cent, at $54.87.
EL&C Baillieu Stockbroking director Richard Morrow said the result had given the other major banks a boost.
"It's driven the entire bank sector higher, which is a continuation of the trend we've seen over the last few days of buying in bank shares," Mr Morrow said.
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All major banks were higher at noon. ANZ was up 52 cents, by 2.1 per cent, at $24.94, Westpac was 35 cents higher, by 1.5 per cent, at $24.01, and National Australia Bank was up 35 cents, or 1.4 per cent, at $25.83.
The miners were mixed. Rio Tinto was up 85 cents at $88.17 and Fortescue Metals was up one cent at $6.70, while BHP Billiton was down 30 cents at $46.68.
Rio Tinto announced overnight that it would invest more than $US1 billion ($A988.88 million) at the group's existing iron ore operations in Australia and Canada.
Mr Morrow said resources such as Rio were higher on positive leads from offshore trading.
"Gains in the resources follows on from a very strong profit in London last night from Xstrata, one of the leading coal and mineral companies in the world," he said.
OZ Minerals was higher, too, up four cents, or 2.3 per cent, at $1.805, after the miner said it had returned to a sound financial position with a $586.9 million full year net profit for calendar 2010.
Making news, building products supplier Boral has reported a 36 per cent rise in first half net profit, and says full year profit should be higher by at least 20 per cent on the prior year.
Boral was the best performing stock on the S&P/ASX200, up 23 cents, or 4.9 per cent, at $4.95.
Stockland was up 12 cents, or 3.2 per cent, at $3.83 after announcing it almost doubled first-half profit and upgraded its full year earnings per security outlook to growth of 8.5 per cent.
The world's largest scrap metal recycler, Sims Metal Management, was the weakest performing stock on the S&P/ASX200 after it forecast a 24 per cent rise in first half net profit, due to strong shipments in the second quarter. Its shares were down 95 cents, or 4.85 per cent, at $18.62.
House builder AV Jennings was up five cents, or 10.4 per cent, at 53 cents after it posted half year net profit up 228 per cent and a strong outlook as demand for new housing remains ahead of supply.
The most traded stock by volume on the ASX at 1222 AEDT was Padbury Mining, with 100 million shares traded for a total $3.818 million.
Padbury's shares rose by 18.8 per cent, or 0.6 cent, to 3.8 cents, after announcing with joint venture partner Aurium Resources the results of a geological mapping program at its Peak Hill project.
Aurium was the sixth most traded stock, with 36.3 million shares traded for $3.054 million. Its stock rose 1.7 cents, or 25.8 per cent, at 8.3 cents.
First Horizon turns profit in third quarterShares higher at noon on resources
