Aust stocks extend gains

The Australian stock market opened higher on Friday following more gains on Wall Street overnight.

At 10.15am AEST (12.15pm NZT), the benchmark S&P/ASX200 index was 25.9 points higher, by 0.57 per cent, at 4,558.6, while the broader All Ordinaries index rose 25.5 points, or 0.56 per cent, to 4,588.5.

On the Sydney Futures Exchange, the September share price index futures contract was 21 points higher at 4,550 on volume of 8,035 contracts.

Around nine stocks rose for every one that fell on the S&P/ASX50 in early trade.

The major miners were stronger. Rio Tinto was up 72 cents, or 0.98 per cent, at A$73.84, while BHP Billiton was 34 cents higher, or 0.89 per cent at A38.66.

Of the major banks, ANZ was the strongest performer with its shares seven cents higher at A$23.50, Commonwealth Bank was up two cents at A$51.94, National Australia Bank was four cents higher at A$24.15, while Westpac had fallen one cent at A$22.64.

Wall Street followed on from the previous day in ending stronger after reports on housing, manufacturing and jobs all indicated that the economy continues to grow. The Dow Jones industrial average rose 50.63, or 0.5 per cent, to close at 10,320.10.

Broader indices also rose. The Standard & Poor's 500 index rose 9.81, or 0.9 per cent, to 1,090.10, while the Nasdaq composite index rose 23.17, or 1.1 per cent, to 2,200.01.

Austock Securities senior client adviser and strategist Michael Heffernan said it was pleasing to see the local market performing strongly for a third day in a row.

BHP would be a stock to watch on Friday ahead of the miner going ex-dividend on Monday, Mr Heffernan said.

He downplayed concerns that US employment figures to be released overnight on Friday could act as a dampener on local trading.

"If the unemployment rate in America goes up to 9.7 per cent or something, well no big surprises to anybody," he said.

"I don't think that anything that happens in America is going to be a great surprise to anybody, frankly."

Retailers were firmer. Woolworths was 18 cents higher at A$28.65 at 10.49am AEST, while Coles owner, Wesfarmers, was up 31 cents at A$33.60.

In news on Friday, ratings agency Standard & Poor's placed fertiliser producer Nufarm on credit watch on concerns about its rising debt and future profitability.

At the same time, listed lawyer Slater and Gordon said Nufarm may face a class action from disaffected investors over its performance following profit guidance earlier in 2010.

Nufarm shares fell 10 cents, or 2.86 per cent, to $3.40 by 10.53am AEST.

In other news, Telstra said it would sell its 50.5 per cent share in SouFun Holdings when the Chinese real estate website makes an initial public offering (IPO) later this year.

Shares in the telecommunications giant were 0.5 cent lower at A$2.80, while rival SingTel, which owns Optus, was flat at A$2.52.

The spot price of gold in Sydney at 10.57am AEST was $US1,250.80 per fine ounce, up $4.00 on Thursday's closing price of $US1,246.80.

Gold miner Newcrest Mining was up 75 cents at A$38.82.

The highest turnover stock by volume at 10.59am AEST was Virgin Blue, with 27.4 million shares changing hands at a total value of A$10.9 million.

Shares in the airline were up two cents, or 5.26 per cent, at 40 cents.

National turnover at 11.09am AEST was 611.12 million shares worth A$1.55 billion, with 459 stocks up, 267 down, and 335 were unchanged.

- AAP