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Aussie shares edged gained 0.8% by lunch on renewed optimism over the strength of the economic recovery as concerns about Greece’s debt burden abated. Most of the base metal prices rose between 1% and 2% overnight, helping the materials and resources sector outperform the market.

In economic news, according the Australian Bureau of Statistics, our GDP grew 0.9% in the December quarter 2009, after growing 0.3% in the September quarter.

“Growth in the expenditure measure of GDP was driven by a 3.5% increase in private investment, a 10.2% increase in public investment and a 0.7% increase in household expenditure,” the ABS said.

”Offsetting these increases was a fall in net exports.”

At noon, the All Ords was up 35.7 to 4,745.6, while the ASX/200 edged 36.0 higher to 4,737.9. Over 1.1 billion shares worth around $2.3 billion had changed hands.

The mid-cap commodity players were muscular, with Fortescue, Sims Group, Mount Gibson and Lihir Gold all rising between 3.5% and 5%.

They were assisted by gains of $1.35, or 1.9% to $73.37 by Rio Tinto and 66c to $41.75 for BHP Billiton.

Steel maker Bluescope extended gains into a fourth day, adding 7c to $2.65.

Mirabela Nickel was 5% stronger.

The Materials and Resources sector gained 1.8%.

ANZ was the best performer of the big banks, up 39c, or 1.5% to $25.99. Westpac, which this morning matched the RBA’s 25 basis interest rate hike, added 19c to $26.92.

The Banks and Financials was 0.3% up.

Among the insurers, QBE slipped 74c, or 3.5% to $20.36 after giving up rights to a 66c dividend today.

Bourse operator ASX gained 53c to $35.99.

The Property Trusts sector was flat.

The Energy sector was 0.3% above the line, with only modest gains to both Woodside and Origin.

Oil Search slumped 10c, or 1.9% to $5.26.

Aquila Resources was 33c, or 3.4% higher at $10.15, while oilfield-engineering firm WorleyParsons advanced 1% to $24.70.

The Consumer Discretionary was 1.2% stronger, with retailers gaining ground. David Jones and Harvey Norman added 1.9% and 1.8% to $4.91 and $3.88 respectively.

Billabong bucked the trend, drifting 1.4% lower.

Elsewhere, Fairfax put on 5.5c, or 3.4% to $1.695, however the media group has hovered around this level for a number of months now.

Tatts Group jumped 10c, or 4.3% to $2.40, retrieving some of yesterday's heavy losses.

The Consumer Staples sector was 0.9% above the line. Wesfarmers added 60c, or 1.9% to $32.70.

Most other stocks in the sector were trading close to the gain line, with the exception of Goodman Fielder which retreated 4.5c, or 2.9% to $1.525 as it went ex-div.

The Industrials sector gained 1.2%. Seek outperformed with a 5% gain to $7.51. 

Airliners and airport stocks performed well. Virgin Blue climbed 2.5c or 3.9% to 66.5c.

MAP Group and Auckland International Airport rose 2.2% and 2% respectively, while Qantas edged 0.7% into the black.

Brambles gained 15c, or 2.1% to $7.26.

Elsewhere, Telstra continued to trade around historic lows, easing 1c, or 0.3% to $2.92. The broader Telecommunications sector dipped 0.2%.

Around the region, the Nikkei 225 retreated 19.8 to 10,202.0, while the NZSE50 rose 18.3 to 3,201.5. The Straits Times Index advanced 4.4 to 2,776.6.

Spot gold was trading at US$1,133.65 per ounce, while the Aussie was buying US$0.9043.

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Coffey makes a further two acquisitions
Coffey International announced the acquisition of Global Justice Systems and Libra Advisory Group Limited for a total of $8.32m. The company said both have been funded from existing cash reserves and have earn-outs based on performance over the next two years.

At midday, Coffey shares were up 4c to $1.89.

Ausenco awarded $9.6m EPCM contract
Ausenco said it has been awarded a $9.6m Engineering, Procurement and Construction Management (EPCM) contract for the magnetite extraction plant at Xstrata Copper’s Ernest Henry Mining (“EHM”) operation located in north west Queensland. The diversified engineering services and project management group said the plant forms part of Xstrata’s $589 million development of the underground mine and magnetite processing operation.

At lunch, Ausenco shares were up 6c to $3.97.

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