The major banks are leading the share market’s rebound, as investors buy up high yielding stocks.
The market has bounced back from Monday’s steep fall, though the mining sector is weaker after the price of iron ore tumbled to its lowest level in nearly six years, OptionsXpress market analyst Ben Le Brun said.
“It’s a nice bounce back from yesterday’s carnage,” he said.
“A lot of the high yielding names are back in focus including the financials, property trusts and the telcos all on the back of a stronger performance from the US overnight.”
Wall Street rose almost 0.8 per cent, and the local market was up almost 0.5 per cent at noon.
Among the major banks, Westpac was up 43 cents at $37.79, ANZ had added 28 cents to $35.44, Commonwealth Bank was up 50 cents at $91.02 and National Australia Bank was 29 cents stronger at $37.92.
In the property sector, Westfield Corporation had gained 25.5 cents to $9.615 and GPT Group was 4.5 cents stronger at $4.675, while Telstra was eight cents higher at $6.22.
Energy and mining stocks were holding the market back, as the iron ore price dropped to $US58.58 a tonne, its lowest level since May 2009.
BHP Billiton was down 22 cents at $31.93, Rio Tinto had dropped 61 cents to $58.59 and Fortescue Metals was 6.5 cents weaker at $2.075.
Santos had shed nine cents to $7.46 and Oil Search was down seven cents at $7.69, while Woodside Petroleum was up 15 cents at $34.99.
KEY FACTS
* At 1200 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 27.1 points, or 0.47 per cent, at 5,848.4.
* The broader All Ordinaries index was up 24.6 points, or 0.42 per cent, at 5,817.6.
* The March share price index futures contract was 21 points higher at 5,836 with 10,897 contracts traded.
* National turnover was 574 million securities worth $1.4 billion.
