Aussie stocks open strongly

MELBOURNE - The Australian share market has jumped on opening, after a strong overnight lead from Wall Street.

At 1015 AEDT, the benchmark S&P/ASX200 index was up 44.4 points, or 0.91 per cent at 4,920.7, while the broader All Ordinaries index had risen 44.9 points, or 0.92 per cent, to 4,934.7.

On the Sydney Futures Exchange, the March share price index contract was 35 points higher at 4,912 points on volume of 7,805 contracts.

In the US overnight, stocks rallied strongly to open 2010, with the Dow Jones industrial average up 155.91 points, or 1.5 per cent, to settle at 10,583.96.

The broader Standard & Poor's 500 index was up 17.89 points, or 1.60 per cent, at 1,132.99, and the Nasdaq hit a 16-month high of 2,308.42, up 39.27 points.

"There are some really positive signs around the market," said IG Markets institutional dealer Chris Weston.

"The market is rallying and pricing in some good data across the world.

"PMI data out of the Euro zone was very strong. We had the tailwinds of PMI (performance of manufacturing) data out of China, and out of the US we had positive manufacturing data, as well," Mr Weston said.

The big miners were mostly higher at 1015 AEDT, with BHP Billiton up 42 cents, or 0.97 per cent, at $43.50, and rival Rio Tinto gaining $1.06, or 1.41 per cent, at $75.98.

At 1031 AEDT, gold producers were higher, boosted by higher prices for the precious metal.

Lihir had risen seven cents to $3.37, Newmont lifted one cent to $5.35 and Newcrest was 82 cents higher, or over two per cent, at $36.82.

The spot price of gold in Sydney at 1034 AEDT was US$1,121.20 per fine ounce, up US$17.93 on Monday's local close of US$1,103.27 per ounce.

Financial stocks also were off to a good start. At 1036 AEDT, Commonwealth Bank was 42 cents higher at $55.29 and National Australia Bank was 26 cents stronger at $27.66.

Westpac had risen 22 cents to $25.52, ANZ put on one cent to $22.90, and Macquarie Group gained 61 cents, 1.27 per cent, to $48.61.

Shares in Trafford Resources built on strong gains made on Monday, and at 1040 AEDT were up 12.5 cents, or 12.32 per cent, to $1.14.

The company on Tuesday said it will take up its full entitlement of a $2.6 million rights issue by its subsidiary, IronClad Mining Ltd.

IronClad said on Monday it would fast-track ore production at Wilcherry Hill in South Australia. Its shares rose by 46 per cent after its announcement.

In early trade on Tuesday, IronClad shares were up nine cents, or 7.76 per cent, at $1.25.

Energy companies also rose in early trade. At 1044 AEDT, Woodside Petroleum had increased 37 cents to $47.90 while rival Oil Search put on two cents to $6.15.

Santos rose 17 cents to $14.46 and Origin Energy lifted 23 cents to $17.03.

Media stocks were mixed at 1048 AEDT, with News Corp down 30 cents at $17.74 while its non-voting scrip lost 34 cents to $15.13.

Fairfax gained 2.5 cents to $1.775 and Consolidated Media strengthened two cents to $3.05.

Retailers mostly were stronger, too. At at 1051 AEDT, Wesfarmers was 64 cents higher, by two per cent, at $31.90, and Woolworths had risen 13 cents to $28.26.

Myer Holdings rose two cents to $3.69 and David Jones gained four cents, to $5.33.

Harvey Norman was four cents weaker at $4.04.

At 1054 AEDT, the most traded stock by volume was Verus Investments, with 40.33 million shares worth $1.52 million changing hands.

Shares in Verus were down 0.2 cent, or 5.13 per cent, at 3.7 cents.

National turnover was 617.69 million shares worth $818.26 million, with 624 stocks up, 191 down and 276 unchanged.

- AAP