Banks keep market higher amid oil rally

The Australian share market is higher with the banks the only soft point as strong profit results and rising oil prices lift stocks.

The benchmark S&P/ASX 200 index was up 0.22 per cent at 1048 AEST on Friday as the major banks fell on the market's open, offsetting gains in materials and energy sector.

A six-day streak of higher oil prices had bolstered the energy sector despite some poor earnings results from energy giants Santos and Woodside Petroleum.

Santos was up four cents, or 0.81 per cent, at $4.99 after it reported half-year profits took a $US1.1 billion ($A1.4 billion) hit in a year of low oil prices. It also suffered a large impairment against its Gladstone liquefied natural gas project in Queensland.

Languishing oil prices had also affected Woodside's half-year result, carving a 50 per cent chunk out of its profit. Its share price was up 69.5 cents, or 2.43 per cent, at $29.24.

The financials index was down after ratings agency Moody's downgraded its outlook for the major banks to negative, citing a sluggish Australian economy opening them up to external risks.

Banks, except from Commonwealth Bank, had been the main drag on the market so far, CommSec market analyst Steven Daglian said.

"Most other sectors are rising at this point, but not enough to offset big losses in the financial sector," he said.

Elsewhere on the market, mobile phone service provider Amaysim's shares had jumped 17.32 per cent to $2.10 after it returned its maiden full-year results with underlying earnings more than doubling.

KEY FACTS:

* At 1048 AEST, the benchmark S&P/ASX 200 index was up 12.1 points, or 0.22 per cent, at 5,519.9 points.

* The broader All Ordinaries index was up 12 points, or 0.21 per cent, at 5,619.3 points.

* The September share price index futures contract, was up 14 points at 5,490 points, with 9,104 contracts traded.

* National turnover was 604 million securities traded, worth $926 million.