Resources stocks are driving the Australian share market towards the key 6,000 mark following gains in commodity prices.
Higher oil and iron ore prices have prompted investors to move into the resources sector following overseas share market gains on Friday night.
“Mining and energy stocks are leading the market higher but gold stocks have taken some of the gloss off that performance,” CMC market analyst Michael McCarthy said.
A five per cent gain in the price of iron ore helped miners BHP Billiton and Rio Tinto push the materials sector and bring the key S&P/ASX200 index to a two-week high.
Mr McCarthy said the market also appeared to taking the view that it was now “game on” for iiNet, with the stock trading above bid prices.
Internet service provider iiNet was $1.05, or 12 per cent, higher at $9.70 after rival M2 Group put forward a takeover offer, setting the scene for a possible bidding war with TPG Telecom.
Among the big miners BHP shares jumped 50 cents, or 1.6 per cent, to $32.55, its highest level since early March.
Rio Tinto climbed $1.35, or 2.3 per cent, to $59.14 while Fortescue lifted 18 cents, or 8.1 per cent, to $2.39.
A moderate lead from Wall Street helped the big banks, with the Dow Jones Industrial Average up 0.12 per cent and the S&P 500 up 0.23 per cent.
Commonwealth Bank lifted 48 cents to $92.58, National Australian Bank climbed 36 cents to $38.43, Westpac gained 37 cents to $38.79. But ANZ fell 20 cents to $35.51.
Bendigo Bank was down four cents at $12.06 after announcing it will issue around $200 million in new convertible preference shares.
Technology group Hills fell 14 cents, or 17.7 per cent, to 65 cents after warning that its full year profit could be up to 40 per cent lower than expected due to weakness across a number of sectors.
KEY FACTS
* At 1200 AEST on Monday, the benchmark S&P/ASX200 index was 36.1 points, or 0.61 per cent, higher at 5,970.2
* The broader All Ordinaries index was up 37 points, or 0.63 per cent, at 5,944.3.
* The June share price index futures contract was 24 points higher at 5,962, with 15,736 contracts traded.
* National turnover was 854 million securities worth $1.8 million.