Australian stocks tipped for another day of gains

The materials sector was up close to 2pc at noon, driving the wider market forward.

Traders say a move to 5,600 and perhaps 5,700 is possible in the days ahead. Pic: Toby Zerna

The shar market continues to gain ground due to a lift in resources stocks, a more positive US economic outlook and stronger Asian markets.

At 1200 AEST, the benchmark S&P/ASX 200 index was up 15.6 points, or 0.28 per cent, at 5,555.3 points.

The broader All Ordinaries index was up 19.2 points, or 0.34 per cent, at 5,634.2 points.

The materials sector was up almost two per cent at noon, while industrials and consumer stocks were also higher and the energy sector was lower. BHP Billiton was up 1.7 per cent at $20.21 following an announcement from the miner that it will book a $US1.4 billion charge for 2015/16 related to its exposure to the Brazillian Samarco mine disaster.

Rio Tinto was up more than two per cent at $50.83.

Virgin Australia was up 2.3 per cent to 22 cents following a fourth-quarter trading update in which the carrier announced it will post a loss of $224.7 million for 2015/16, due to its restructuring.

Mops and shelving specialist GUD Holdings was down 4.7 per cent at $9.21 after the owner of the Dexion and Oates brands posted a full year net loss of $43 million.

- AAP