Stocks flat in early trade as resources lift offsets Qantas dip

Australian shares were higher at midday, with gains in miners and health stocks offsetting weakness in the big banks.

Australian Securities Exchange (ASX) trading board in Sydney. (AAP Image/Mick Tsikas)

Australian shares were higher at lunchtime with gains in the miners and health stocks offsetting weakness in the big banks.

At noon (AEDT), the benchmark S&P/ASX 200 index was up 5.9 points, or 0.11 per cent, at 5,289.7 points. The broader All Ordinaries index was up 4.6 points, or 0.09 per cent, at 5,375.5 points.

After a flat start, investor enthusiasm picked up into the session with gains for BHP Billiton, up 0.7 per cent to $US23.135, and Rio Tinto, up 1.6 per cent to $54.62.

Rio Tinto confirmed it will sell its stake in the Simandou iron ore project in Guinea to partner Chinalco for $US1.1 billion to $US1.3 billion ($A1.4 billion to $A1.7 billion).

In other news, ANZ was two cents softer at $27.60 after announcing an exit from its retail and wealth businesses in five Asian countries.

The banking sector was almost flat with Westpac down eight cents at $30.16, National Australia Bank three cents weaker at $27.88 and Commonwealth Bank one cent higher at $72.76.

Qantas recovered from an early dip to be 11 cents, or 3.7 per cent higher, at $3.05 after warning the market its interim underlying profit could be up to 13 per cent lower due to international competition pressures and a weak local market.