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Shares maintain strong early gains

The share market remains one per cent higher due to stronger commodity prices and positive leads from overseas markets.

European markets and Wall Street posted strong gains on Friday, putting an end to a series of heavy falls.

Key commodity prices also rose, providing a boost for local mining stocks, CMC Markets chief strategist Michael McCarthy said.

"Those strong leads from overseas markets are a big factor but just as important are the strong leads from commodity markets," he said.

"Iron ore, copper and oil prices moved up on Friday and that speaks to our resources sector nicely."

BHP Billiton was 44 cents higher at $33.84, Rio Tinto had climbed 38 cents to $59.75 and Fortescue Metals was up three cents at $3.47.

The energy sector was also stronger, with Santos up 20 cents at $12.92 and Woodside 25 cents higher at $39.83.

The market was also being lifted by the banks, with Commonwealth up 63 cents at $77.17, ANZ up 53 cents at $32.46, Westpac up 45 cents at $33.55 and National Australia Bank was 41 cents higher at $33.56.

Telstra had gained 3.5 cents to $5.415.

Shares in Ten Network and Fairfax Media were boosted by media reports the broadcaster and publisher have held merger talks.

Ten was up 1.5 cents at 22 cents and Fairfax had added three cents to 81 cents.

Mining services provider Ausdrill was down 10 cents at 77 cents after it warned its annual earnings will slump by up to 13 per cent.

KEY FACTS

  • At 1200 AEDT on Monday, the benchmark S&P/ASX200 index was up 57.5 points, or 1.09 per cent, at 5,329.2 points.


  • The broader All Ordinaries index was up 57 points, or 1.08 per cent, at 5,317.1 points.


  • The December share price index futures contract was up 70 points at 5,307 points, with 13,961 contracts traded.


  • National turnover was 544 million securities worth $1.13 billion.