The share market is higher for the first time in more than a week, after gains on Wall Street helped boost investor confidence.
The market is around half a per cent higher, ending a six-session losing streak that coincided with weakness on US and European markets.
The gains are being driven by a strong performance from Wall Street on Friday night, where both the Dow Jones Industrial Average and the S&P 500 index rose more than one per cent, Morgans private client advisor Alistair McCorquodale said.
“We’re really following that bounce in the US and the gains are pretty much across the board,” he said.
However it is too early to say if this begins a sustained turnaround in market sentiment after last week’s weakness, Mr McCorquodale said.
Issues like instability in Iraq and conflicts in Gaza and Ukraine could continue to weigh on markets, he said.
“You’ve still got some geopolitical insecurities so I think it’s too early to say,” Mr McCorquodale said.
The big four banks and major resources companies were driving the market’s gains.
One of the weakest performers was electronics retailer JB Hi-Fi, with its shares down nearly eight per cent after a slide in sales during July overshadowed a 10 per cent increase in its annual profit.
JB Hi-Fi shares were down $1.52 at $17.85.
Bendigo and Adelaide Bank shares were up 26 cents at $12.44 after it increased its full year profit by six per cent to $372.3 million, with improved revenue and margins.
Shares in Treasury Wine Estates were up 11 cents at $5.24 after the Penfolds owner received a second takeover proposal from a private equity firm.
Among the big four banks, Commonwealth Bank was up 40 cents at $80.53, ANZ had lifted 18 cents to $32.44, NAB was up 13 cents at $33.96 and Westpac was two cents higher at $33.05.
Resources giant BHP Billiton had gained 27 cents to $38.01, Rio tinto had lifted 56 cents to $66.99, while Fortescue Metals was flat at $4.56.
KEY FACTS
* At 1200 AEST on Monday, the benchmark S&P/ASX200 index was up 29.2 points, or 0.54 per cent, at 5,464.5.
*The broader All Ordinaries index was up 28.1 points, or 0.52 per cent, at 5,457.7.
* On the ASX 24, the September share price index futures contract was up 30 points at 5,406, with 16,173 contracts traded.
* National turnover was 836 million shares worth $1.2 billion.
