Stocks higher at noon as confidence gains

AUSTRALIAN shares were higher at noon, extending gains from this morning as investors gained confidence in the strength of the local economy. At noon, the benchmark S&P/ASX200 index was up 53.9 points, or 1.3 per cent, at 4,216.1, while the broader All Ordinaries index was up 55.9 points, or 1.33 per cent, at 4,259.4. On the ASX 24, the September share price index futures contract was up 62 points at 4,155, with 34,615 contracts traded. Shaw Stockbroking senior dealer Jamie Spiteri said local traders were responding to a positive start to the reporting season. Telstra yesterday announced its revenue had increased by 0.7 per cent to $25.09 billion, in line with previous guidance and declared a fully-franked final dividend of 14 cents, taking the full year payout to 28 cents, in line with the previous year. Start of sidebar. Skip to end of sidebar. End of sidebar. Return to start of sidebar. "Amongst all the uncertainty and volatility (overseas), the Australian market does represent relative value," Mr Spiteri said. "Our domestic economy is relatively stable in comparison and our corporates have shown with results that their operations in Australia have delivered significant and reliable shareholder returns." Australia's growing alliance with Asia and, in particular, China, could also allow it to diversify away from past reliance on the US and Europe, he said. He expects the market to remain steady for the rest of the day. "The market might just give up a bit of ground, but only modestly in comparison to the rest of this week," he said. In local trade, the banks traded higher at noon, with NAB up 29 cents, or 1.27 per cent, at $23.19, Westpac rising 18 cents to $20.63, Commonwealth Bank lifting 31 cents to $48.89, while ANZ was 6 cents higher at $20.15. Miners were also stronger at noon. BHP Billiton shares were 68 cents higher, by 1.79 per cent, at $38.61, while Rio Tinto was up $1.44, or 2.05 per cent, at $71.85. The price of gold in Sydney was $US1,760.2 per fine ounce, down $US21.48 from Thursday's local close at $US1,781.68. Gold miner Newcrest Mining lost six cents at $40.68. At 12:54 (AEST), Westfield Group shares were five cents lower at $7.51 after shopping centre developer and operator Westfield Group said it would enter its second new market in two days, with a joint venture in the northern Italian city of Milan. National turnover at noon was 1.1 billion shares worth $2.5 billion, with 784 stocks up, 187 down and 216 were steady.