Surge...The share market has jumped on the back of a US-govenment rescue of two mortgage giants.
THE share market was higher at noon, led by the financial sector after news that the US government would take over troubled mortgage institutions Freddie Mac and Fannie Mae.
At 12pm (AEST), the benchmark S&P/ASX200 had added 187 points, or 3.83 per cent to 5064.1, while the broader All Ordinaries gained 176 points, or 3.56 per cent to 5125.5.
The September share price index futures contract climbed 199 points to 5073 on volume of 19,951 contracts.
Macquarie Equities Brisbane adviser Helen Spencer said news of the US intervention in Freddie Mac and Fannie Mae had had a positive effect on most sectors.
"It`s a very positive day," Ms Spencer said.
"The banks are obviously strong and the resources have also been trading higher.
"We expect it to hold throughout the day."
Westpac and St George today announced a revised merger proposal involving a higher dividend for St George shareholders and measures to increase the certainty of the transaction.
Westpac gained $1.22, or 5.22 per cent, to $24.57 and St George Bank added $1.55, or 5.09 per cent, to $32.00.
Commonwealth Bank of Australia firmed $2.46, or 5.91 per cent, to $44.05, National Australia Bank added $1.85, or 7.84 per cent, to $25.45 and ANZ was up $1.58, or 9.54 per cent, to $17.84.
Among the miners, BHP Billiton gained 86 cents, or 2.32 per cent, to $37.86, and Rio Tinto added $1.80, or 1.64 per cent, to $111.88.
In the news today, Cooper Energy has launched a $104 million takeover bid for Incremental Petroleum Ltd in a bid to create a mid-tier oil and gas producer. Cooper fell 1.5 cents, or 3.53 per cent, to 41 cents while Incremental Petroleum climbed 21.5 cents, or 22.05 per cent, to $1.19.
Origin Energy says it has selected US gas operator, ConocoPhillips as operating partner in its Queensland coal seam gas project. Origin gained $2.06, or 13.16 per cent, to $17.71.
The energy sector was higher at 12.18pm AEST, with Santos up $1.61, or 9.22 per cent, to $19.07, Oil Search adding 44 cents, or 8.45 per cent to $5.65, and Woodside climbing $3.02, or 5.39 per cent to $59.
At 12.20pm AEST the spot price of gold was $US813.40 an ounce, up $US14.60 on Friday`s Sydney close of $US798.80 an ounce.
Newcrest added 52 cents to $22.29, Newmont was down five cents to $4.95, while Lihir added eleven cents, or 5.73 per cent, to $2.03.
In the media, Consolidated Media added four cents to $3.29, News Corp - which is the parent company of the publisher of NEWS.com.au - gained 28 cents to $17.28 and its non-voting shares were 23 cents higher to $16.82.
The retail sector was mixed. Woolworths added 14 cents to $27.44, Harvey Norman gained nine cents to $3.57, David Jones was up ten cents to $4.32 and Wesfarmers was up 91 cents to $31.81.
Qantas climbed five cents to $3.65, while Virgin Blue lifted two cents, or 3.54 per cent, to 58.5 cents.
At 12.31pm AEST, the most traded stock was Oz Minerals, with 21.62 million shares changing hands, collectively worth $34.70 million. Oz Minerals shares were up 0.5 cent at $1.52.
Market turnover reached 594.05 million, worth a total of $3.18 billion, with 592 stocks moving up, 300 moving down and 231 unchanged.
