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Investors jumped into the Aussie market Monday morning, sending the broader indices 0.6% higher at lunch. The result came despite a flat lead from Wall Street on Friday and subdued volumes following a hectic reporting season, which barring a few laggards, wrapped up last week.

In economic news, the TD Securities-Melbourne Institute inflation gauge rose by just 0.1% in February. The previous two months the inflation measure had increased 0.8%.

The All Ords was up 26.2 to 4,677.3, while the ASX/200 added 27.8 to 4,665.5. Over 800 million shares worth around $2.2 billion had changed hands.

BHP Billiton was the only major player to lose ground. Its shares dipped 20c, or 0.5%, while the Materials and Resources sector rose 0.3% overall.

Rio Tinto, the world’s third largest miner, was 98c, or 1.4% higher at $71.48. The miner said it had increased its interest in Canada's Ivanhoe Mines to 22.4% following the acquisition of a further 15 million shares.

OZ Minerals made strong ground, with its shares jumping 5.8% to $1.10.

Gold miners Newcrest and Lihir were both 2.6% stronger at $32.17 and $2.72 respectively. 

Meanwhile, Alumina spiked 4.3% to $1.57. The price for aluminium rose 2.4% in London last Friday.

The Banks and Financials sector rose 0.3%. ANZ and Westpac gained ground among the big four banks, up 1.8% and 1.1% respectively.

CBA and NAB were little changed.

The insurers were weak, with Suncorp-Metway and AXA Asia Pacific down 2% each.

IAG bucked the trend putting on 12c to $4.07.

Investment bank Macquarie added 1.4% to $45.90.

The Energy sector was 1.3% higher. Woodside and Oil Search advanced 0.4% each, while Origin and Santos’s gains were more pronounced. Their shares rose 28c, or 1.7% to $17.09 and 17c, or 1.3% to $13.13 respectively.

Aquila, Riversdale Mining, Beach Energy and AWE were all between 4% and 4.5% higher.

The Property Trusts were 0.1% lower, with most stocks doing very little. The exception was Lend Lease, which slumped 2.3% after completing the institutional component of its $434 million capital raising.

The Consumer Discretionary sector was 0.8% higher. Retailers were mixed, with Harvey Norman easing 5c, or 1.3% to $3.78, while David Jones added 10c, or 2.1% to $4.84.

Among the gamers, Aristocrat and Tatts were up 1.9% and 1.7% to $4.31 and $2.44 respectively.

Seven led the way higher for media stocks, putting on 27c, or 3.7% to $7.61.

The Consumer Staples sector rallied 1.7% on the back of 1.5% and 2.8% gains to heavyweights Woolworths and Wesfarmers.

Toll bounced back from very heavy selling in the last few days last week. Its shares surged 39c, or 5.7% to $7.19 as the Industrials sector rose 1.4%.

Brambles added 17c, or 2.4% $7.11, while engineering firms Downer EDI and UGL were both 1.9% stronger.

Healthcare climbed 1.5% on the back of the sector’s largest company, CSL, adding 73c, or 2.1% to $35.12.

Around the region, the Nikkei 225 was up 45.0 to 10,171.0, while the NZSE50 added 11.5 to 3,167.6. The Straits Times Index rose 11.5 to 2,762.4.

Spot gold was trading at US$1,117.98 per ounce, while the Aussie was buying US$0.9000.

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Rio to increase stake in Canada's Ivanhoe
Rio Tinto said it has agreed to acquire 15 million shares in Ivanhoe Mines Limited for C$244.7m. The mining giant said the acquisition would increase its ownership in Ivanhoe Mines by 2.7% to 22.4%.

At noon, Rio Tinto shares were up 60c to $71.10.  

Westpac operates as single ADI
Westpac Banking Corporation said today that it commenced operating as a single authorised deposit-taking institution (“ADI”). Australia’s second largest bank by market capitalisation said in moving to a single ADI all the assets and liabilities of St.George Bank Limited have become those of Westpac’s.

At lunch, Westpac shares were up 22c to $26.35.

AGL to construct Macarthur Wind Farm
AGL Energy said it has entered into conditional arrangements for the construction of Macarthur Wind Farm in south-west Victoria under a joint venture with New Zealand’s Meridian Energy. The company said the agreement follows the Federal government’s announcement last week of proposed changes to the operation of the Renewable Energy Target scheme.

At midday, AGL shares were up 16c to $14.53.

Lend Lease raises $434m, more to come
Lend Lease said it has successfully raised $434m from the institutional component of its fully underwritten equity raising announced last Thursday. Existing shareholders subscribed for over 87% of their entitlements available under the Institutional Entitlement Offer.

At lunchtime, Lend Lease shares were down 24c to $9.10.

Clive Peeters profit slumps to just $424k
Clive Peeters squeezed out a modest $424,000 profit in the six months to 31 December, despite posting revenue of $252m. The profit figure was down 57%, while revenue dipped just 5% from the previous corresponding period.

At noon, Clive Peeters shares were down 4c to 24c.

Extract appoints Leslie as CEO
Extract Resources announced the appointment of former Rio Tinto board member Jonathan Leslie as the Group’s CEO with immediate effect. The uranium explorer said Mr Leslie was on the board of Rio Tinto PLC for nine years and CEO of two of Rio Tinto’s major product groups.

At lunch, Extract shares were up 15c to $7.40.

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