Australian stocks: Market up under 1pc

MELBOURNE - Australian share market opened higher after early gains from the big miners and a marginal rise on Wall Street overnight.

At 1010 AEDT, the benchmark S&P/ASX200 was 27.2 points, or 0.84 per cent higher at 3271.6, while the broader All Ordinaries gained 24.3 points, or 0.76 per cent to 3223.4.

On the Sydney Futures Exchange the March share price index contract was 35 points higher at 3264 on a volume of 7,228 contracts.

The big miners were stronger, with BHP Billiton adding 51 cents, or 1.67 per cent to $31.01 by 1012 AEDT and rival Rio Tinto gaining $1.03, or 2.07 per cent to $50.83.

The spot price of gold was US$907.75 an ounce by 1013 AEDT, up US$10.05 on Wednesday's local close of US$897.70 an ounce.

The gold miners were stronger, with Newcrest adding 31 cents to $31.22 by 1013 AEDT, Newmont putting on 15 cents to $5.65 and Lihir finding nine cents to $2.95.

US stocks ended marginally higher overnight with financial stocks leading an early rally for the second straight session, pushing the Dow Jones Industrial Average up 3.91 points to close at 6,930.4.

Austock Securities senior client adviser Michael Heffernan said early gains from the big miners were driving the bourse at the open, while investors responded positively to National Australia Bank's strategic review.

"The miners are really driving the market, with Rio and BHP both up close to two per cent as the gates were flung open," Mr Heffernan told AAP.

"The other big mover is National Australia Bank, which is the biggest mover in the top 20 ... It is up four per cent after its strategy review this morning, which clearly, according to the market, has gone down particularly well with investors so far today."

National Australia Bank put on 76 cents, or 4.66 per cent to $17.06 by 1026 AEDT after the company said it would cut its first half dividend by about 25 per cent and focus on growing its Australian business as it prepares to sit out the global economic downturn.

The others banks were mixed, with ANZ steady at $13.15 by 1027 AEDT, Westpac losing seven cents to $16.80 and Commonwealth Bank finding 18 cents to $28.43.

The retailers were mixed, with Wesfarmers gaining 23 cents to $17.57 by 1028 AEDT, Harvey Norman putting on two cents to $2.20, David Jones dropping two cents to $2.26 and Woolworths falling 20 cents to $25.30.

New Zealand-based discount retailer The Warehouse Group, ten per owned by Woolworths, added three cents to $2.65 by 1029 AEDT and expects no improvement in consumer confidence after delivering a 24 per cent drop in interim net profit.

The media sector was mixed, with News Corp putting on 28 cents to $9.84 by 1031 AEDT, its non-voting shares adding 35 cents to $8.80, Consolidated Media Holdings losing 3.5 cents to $1.915 and Fairfax dropping 1.5 cents to 83 cents.

The energy sector was weaker, with Woodside falling 42 cents to $36.57 by 1032 AEDT, Santos losing four cents to $15.88 and Oil Search dropping four cents to $5.06.

Junior explorer Admiralty Resources was the most traded stock by volume at the open, with 19.79 million shares changing hands, collectively worth $438,156. Its shares rose 0.2 cent, or by ten per cent, to 2.2 cents.

Market turnover reached 206.96 million, worth $543.75 million, with 267 stocks moving up, 229 moving down and 178 unchanged.

- AAP