Shares extend gains, higher at noon

AUSTRALIAN shares were higher at noon, building on gains from early trade, with the materials and financials sectors leading the market. At noon, the benchmark S&P/ASX200 index was up 73 points, or 1.8 per cent, at 4,148.5, while the broader All Ordinaries index was up 68.6 points, or 1.7 per cent, at 4,229.3. On the ASX 24, the September share price index futures contract was 77 points higher at 4,145, on volume of 24,053 contracts. Bell Potter client adviser Greg McPherson said volumes were below average as investors awaited firmer direction from US President Barack Obama's speech on Thursday (US time), which is expected to propose $US300 billion ($286 billion) in federal spending and tax cuts to get Americans working again. Mr McPherson said that despite momentary relief that the Australian economy had returned to growth, with gross domestic product (GDP) up 1.2 per cent in the June quarter, after suffering a downturn in the previous quarter because of the floods and cyclones over the summer, investors were still relying on news from offshore markets. Start of sidebar. Skip to end of sidebar. End of sidebar. Return to start of sidebar. "There was, certainly, a little bit of (optimism) there and you saw the spike just after the numbers came, but as it stands now we're 10, 15 points lower than when they came out," he said. "I think it's by no means a negative thing, but local news has just given everyone a bit of heart. But I still don't think that, because of the global issues, there's any conviction to put your money where your mouth is." Making news in local trade, investment bank Macquarie Group shares were down six cents to $23.10 after it reduced its earnings guidance, saying it expected its first half profit to decline from a year earlier, due to difficult trading conditions and a higher tax rate. Wesfarmers was 45 cents higher at $30.10 after Coles said it would source more cheese locally for its private label line in a deal expected to create 30 new jobs. The financial and materials sectors were leading the market, up 2.3 per cent and 2.1 per cent, respectively. The major banks were higher, with National Australia Bank up 68.5 cents to $22.83. Westpac gained 52 cents to $20.02, Commonwealth Bank rose $1.06 to $47.04 and ANZ climbed 59 cents to $19.85. Among the miners, BHP Billiton was up $1.11, at $37.99. Fellow miner Rio Tinto was $1.57 higher at $69.98. Downer EDI Ltd was the best performing stock, gaining 15 cents to $3.35. The spot price of gold in Sydney was $US1,873.9 per fine ounce, down $32.73 from Tuesday's local close at $US1,906.63. National turnover was 919.01 million shares changing hands for $2.13 billion, with about eight out of 10 stocks higher.