The share market was in positive territory by early afternoon with banks and miners leading the way after the exchange opened lower today.

The benchmark S&P/ASX 200 index increased by 16.2 points, or 0.37 per cent, at 4400.7 points, while the broader All Ordinaries index gained 13.3 points (0.3 per cent) at 4423.

On the Sydney Futures Exchange, the September futures contract improved seven points at 4384, on 12,680 contracts.

CMC Markets analyst David Taylor said the movements were erratic and immaterial due to very low volumes.

"The underlying theme is hesitation," Mr Taylor said.

"With payroll data due in the US later this week, the general feel is traders and investors won't take on any major positions until that data" is issued.
"Caution is the name of the game."

The financial sector had driven the market's overall ascent in the morning.
National Australia Bank gained 22 cents to $23.75, Westpac rose 39c to $21.90 and Commonwealth increased by 16c at $50.11. ANZ, however, went down 2c at $22.27.

The major mining stocks also improved, with Rio Tinto adding $1.17 at $69.77 and BHP Billiton up by 18c to $38.67.

"To be honest, you can't really read much into this market at the moment. There's just not enough meat to it," Mr Taylor said.

Energy and gold stocks were reduced on collapsing oil and gold prices.
Woodside Petroleum fell 32c at $42.96 and Oil Search was down 3c at $5.69. Santos went up 17c at $12.83.

At 1214 AEST, the spot price of gold in Sydney became $US1237.80, a $US16 decrease from yesterday's close.

Gold stocks were demoted, with Newcrest Mining lower by 78c at $35.14 and Lihir Gold down by 9c at $4.32.