Aust market opens higher

The Australian share market is higher, boosted by some positive company earnings reports and strength among most of the major banks.

"It's been a strong start," IG market analyst Angus Nicholson said.

Mr Nicholson said earnings reports from gold miner Newcrest and freight rail operator Aurizon, which transports an lot of coal, had been encouraging for the resources sector.

But the Commonwealth Bank was trading lower as it resumed trading after raising $2.1 billion from institutional investors. Australia's biggest bank on Monday announced it had completed the institutional component of its $5 billion capital raising.

Mr Nicholson said the big banks currently were not moving much, but he expected CBA could fall below $80.00.

He said investors remained concerned that the big banks may have to raise more capital down the track.

At 1029 AEST, the Commonwealth Bank was 94.66 cents, or 1.17 per cent, lower at $80.72.

National Australia Bank had climbed 31 cents to $32.07, ANZ had lifted 22 cents to $29.51, and Westpac was up 27 cents at $31.60.

In the resources sector, global miner BHP Billiton was 17 cents higher at $25.49, Rio Tinto had firmed 56 cents to $51.69, and Fortescue Metals cents had put on 6.5 cents to $1.85.

Gold miner Newcrest had jumped 38 cents to $11.33 after it returned to profit, aided by increased by cost cuts and a rise in copper and gold production.

Aurizon found 18 cents at $5.24 as it increased its dividend after lifting its full-year underlying profit 15 per cent.


* At 1034 AEST on Monday, the benchmark S&P/ASX200 index was up 34.3 points, or 0.64 per cent, at 5,390.8 points.

* The broader All Ordinaries index was up 33.6 points, or 0.63 per cent, at 5,393.6 points.

* The September share price index futures contract was 42 points higher at 5,333 points, with 11,221 contracts traded.

* National turnover was 359.2 million securities worth $530.8 million.

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