Aussie shares rebounded into positive territory Friday following two days of losses. Resource stocks showed strength following a jump in base metal prices in London overnight, while banks were also in favour.

On a slow news day at lunch, the All Ords was up 36.1 to 4,469, while the ASX/200 rose 35.2 to 4,464.8. Over 1.3 billion shares, or $1.7 billion had changed hands.

The Materials and Resources sector climbed 0.5%. BHP Billiton was flat and Rio Tinto put on 0.7%. 

The gold miners were stronger as the price of the precious metal approached US$1,000 in New York. Newcrest and Lihir rallied 1.9% and 0.3%, while Sino Gold added 1%.

Materials makers James Hardie and Boral rose 0.3% and 1.1% respectively.

Macarthur Coal added 5.4% while Fortescue was flat. OZ Minerals tacked on 0.5%. 

Recycler Sims Group was one of the few stocks to retreat, down 1.6%. Bluescope retreated 0.7%, though rival Onesteel climbed 1.9%.

Energy stocks were mostly trading higher. The sector added 1.1%.

Santos climbed 0.3%, Coal miner Felix Resources rose 0.1%. Woodside added 1.2% and Oil Search gained 2%.

Caltex lost 0.3% and Origin Energy was off 0.7%

The Industrials sector was 1.2% higher with strong gains from the major players. Brambles and Leightons picked up 3.4% and 3.5% respectively. Asciano gained 4%.

Macquarie satellites Macquarie Airports and Macquarie Infrastructure lost 0.4% and 0.7%.

Qantas drifted 1.6% lower. Seek, which entered the ASX/S&P top 100 stocks at the expense of Consolidated Media, lost 0.7%.

The Banks and Financials sector was 1.1% higher with gains recorded by the four major banks.

ANZ and CBA rose 1.9% and 1.6%, while NAB and Westpac tacked on 1.1% and 0.5% respectively.

Insurers were mixed. AXA Asia Pacific lost 0.5% and QBE shed 0.8%. IAG climbed 2.6%.

Macquarie Group was 0.3% higher on subdued trading.

Property Trusts, which were heavily sold yesterday, bounced back with a 1.5% gain.

Westfield rose 0.8%, while Mirvac and Dexus added 2.1% each.

Lend Lease bucked the trend, shedding 2.3%.

The Consumer Staples was 0.2% higher at lunch with gains capped by a 0.7% drop from Wesfarmers.

Woolworths went the other way, adding 0.8%. Beverage makers Coca-Cola Amatil rose 2.1%, with Foster's rising 0.6%.

Consumer Discretionary stocks were trading 0.7% higher, with Billabong, David Jones and JB Hi-Fi putting on 3%, 3.1% and 1% respectively.

Gamers were trading close to the gain line with Crown and Tabcorp up 1% and 0.9%, while Aristocrat was down 0.4%.

Consolidated Media showed the most strength among the major sector players with a 4.5% jump.

A 0.6% rise in the price of Telstra shares helped the Telecommunications sector up 0.6%.

Among Healthcare stocks, CSL rose 1.1%, while Sonic Healthcare drifted 0.6% lower. The sector put on 0.6%.

Around the region, the Nikkei 225 slipped 14.5 to 10,200.2, the Straits Times Index added 12.2 to be at 2,610.5 and NZSE50 put on 18.4 to 3,110.0.

Spot gold was trading at US$990.10 per ounce and the Aussie was buying US$0.8398.  

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Technology One downgrades guidance
Technology One said it now expects full year profit to be down by 6% to 12% compared to last year. The software company said the reason for the downgrade was a weaker than previously forecast revenue and higher than originally expected expense growth.

At noon, Technology One shares were down 9.5c to 75c.

BBI enters agreement to reduce debt
Babcock and Brown Infrastructure said it has entered into an interim agreement with a potential cornerstone investor, with the aim of reducing the company’s $10.3bn debt. The company said it entered the agreement with the potential investor to continue to negotiate in good faith the development of the proposed transaction.

At lunch, BBI shares were down 0.5c to 7.3c.

Corporate Express first half profit down
Corporate Express Australia reported an 8.8% drop in first half profit to $25.5m versus the previous corresponding period. The office products provider said it is on track to achieve EBIT at the lower end of analysts’ consensus forecasts for the fiscal year ending January 2010.

At midday, Corporate Express shares were down 17c to $3.86.