ASX 200 rises 2.66 % at 3 pm today

The Australian share market has held on to its gains in early afternoon trade after a strong opening on positive Wall Street leads from Friday.

The benchmark S&P/ASX200 index was up 2.66 per cent, to 4252 points, while the broader All Ordinaries index was 83.3 points stronger at 4286.7 points.There had been concerns the mood of investors would be subdued due to European leaders' inability to finalise measures to boost Europe's bailout fund and resolve the Greek debt crisis. "We managed to hold on to the positive leads and actually took it in stride," he said. IG Markets strategist Stan Shamu said he thought the mood might be dampened by news the European Union would not ask the European Central Bank for further funding for the bond market.

"It's very difficult to know what's going to happen from here."  Investors' spirits had also been boosted by Australia's lower producer price index numbers on Monday, of an 0.6 per cent rise, raising hopes of an interest rate cut, Mr Shamu said.

The rises on the Australian bourse were led by materials and energy stocks, which were both up by more than 2.5 per cent.

Woodside Petroleum had lifted 99 cents, or 2.97 per cent, to $34.37, Oil Search rose 14 cents, or 2.38 per cent, to $6.02, while Santos was 29 cents firmer at $12.41.  Among the mining giants, BHP Billiton gained 83 cents to $36.53, while Rio Tinto improved $2.51, or, 4.01 per cent, to $65.08 and Fortescue Metals increased 18 cents, or 4.24 per cent, to $4.43.

Australia's big banks, three of which report their latest earnings results in the next two weeks, were all up.   ANZ climbed 41 cents to $21.62 and NAB was 49 cents at $24.81.   Commonwealth Bank advanced 88 cents to $48.43 and Westpac was the best performed so far on Monday, climbing 48 cents, or 2.23 per cent, to $21.98.

National turnover was 374.7 million securities worth $627 million, with 517 stocks up, 152 down and 237 unchanged.

Key Info:
The $A was trading lower at $US1.0323
In the US, the S&P 500 rose22.8 pts, or 1.9%, to 1238.2
In Europe, the FTSE added 103.9 pts, or 2%, to 5488.6
Gold rose 1.2% to $US1637.39 an ounce


Thanks to SMH