Noon stocks higher on positive sentiment

On Friday 7 October 2011, 12:45

Australian shares rose by almost two per cent, boosted by investors' confidence that a Greek default would not extend beyond Europe.
The local market opened more than one per cent firmer on Friday, following strong European and US leads after a tranche of details about the Europeans' plans for the debt crisis were released overnight.
By 1200 AEDT, both major local indices had moved higher, with the benchmark S&P/ASX200 index up 79.9 points, or 1.96 per cent, at 4,149.8 and the broader All Ordinaries index gained 78.6 points, or 1.9 per cent, to 4,210.7.
Macquarie Private Wealth division director Lucinda Chan said trading volumes were average, and likely to end on par with Thursday, when the market leapt the most in almost three years.
Turnover was 899.6 million shares worth $2.71 billion.
She said investors were hopeful a Greek default would not lead to a global recession after the Netherlands voted to beef up Europe's rescue fund.
The European Central Bank (ECB) unveiled new measures to help cash-strapped Eurozone banks with additional liquidity in a bid to avert a possible credit crunch in the single currency area on Thursday.
"(Everyone's thinking) they're able to better manage the situation," she said.
Ms Chan said sentiment also was lifted by high liquidity levels in the market.
"Risk is more to the upside. Yesterday was a strong one which indicated some short covering and today there's some buying coming back into the market, and Australian shares are looking more attractive.
"People are starting to review their portfolios and, hopefully, we'll see more buying in the next few weeks."
Locally, gains were broad-based, with about five stocks rising for every one that fell.
The materials sector was the strongest on the market, rising 2.5 per cent.
Among the miners, BHP Billiton advanced 2.3 per cent, or 82 cents, to $37.12, while fellow miner Rio Tinto gained $2.01, or 3.2 per cent, to $65.29.
Fortescue Metals gained 22 cents, or 4.9 per cent, to $4.77. Sims Metal Group rose five per cent to $12.92 after the company announced an on-market share buy back.
Financials, which led the US market higher overnight, were also strong, with all the major retail banks gaining ground.
National Australia Bank was the strongest, up 69 cents, or three per cent, to $23.56.
The biggest mover on the ASX 100 was Transfield Services, which rose 13 cents, or 6.4 per cent, to $2.15.
Meanwhile, Qantas shares gained 4.5 cents, or 3.1 per cent, to $1.49 after the airline said it was too late to scrap contingency plans it had put in place for expected work stoppages. The Transport Workers' Union (TWU) late on Thursday called off its action planned for Friday.
Qantas had cancelled 17 flights and delayed another 29, with 5,700 passengers expected to be effected.
The spot price of gold was $US1,651.47, up $US5.17 from Thursday's local close of $US1,646.3.
The December share price index futures contract was up 90 points at 4,155, with 269,816 contracts traded.

Thursday, 6 October 2011