Aussie shares hit one-year high

THE Australian sharemarket has hit its highest point for the year as it continues to post gains in response to the RBA's interest rate cut.

ASX

THE Australian sharemarket has hit its highest point for the year as it continues to post gains in response to the Reserve Bank of Australia's (RBA) interest rate cut.

At 12.00 AEST, the benchmark S&P/ASX200 index was up 10 points, or 0.23 per cent, at 4443 points, while the broader All Ordinaries index had risen 10 points, or 0.22 per cent, to 4461.9 points.

On the ASX 24, the December share price index futures contract was six points higher at 4,396 points, with 14,166 contracts traded.

IG Markets analyst Cameron Peacock said the S&P/ASX200 reached a high of 4,454 points in morning trade before easing back.

"That was the highest level we've been at all year," Mr Peacock said.

The market dipped slightly after the release of weak Australian export data which confirmed concerns about commodity prices.

Sentiment remained relatively positive, however, supported with recent decisions by the European Central Bank and the US Federal Reserve to print money, Mr Peacock said.

"Europe just seems to be on a sounder footing," he said.

Wednesday's gains also came despite a fall on Wall Street of the Dow Jones Industrial Average.

The four big banks, who were yet to announce their response to the RBA move, were all higher.

ANZ was up 11 cents at $25.10, CBA had gained 18 cents to $56.20, NAB was 21 cents higher at $26.02 and Westpac had advanced eight cents to $25.24.

Major resources stocks were weaker, with BHP Billiton down 14 cents to $34.40 and Rio Tinto dropping 27 cents to $53.71.

Fortescue Metals was down two cents at $3.53 and Newcrest had lost 53 cents to $28.78.

National turnover was 602 million securities worth $1.1 billion, with 417 stocks up, 322 down and 321 unchanged.