The Australian stock market was rallying, with most sectors up at noon, although energy shares continue to be punished.

The lift is more modest than in the US, where the main markets all gained more than one per cent overnight, ending a five-day losing streak.

Energy stocks are again down more than one per cent, despite oil prices recovering by two per cent overnight.

That was due to analysis in the last day suggesting some Australian producers have negative values at the current weak oil prices.

“There’s a bit of a scare out there but that’s a misnomer, you don’t price companies on the current spot price and change valuations every day,” CMC Markets chief market strategist Michael McCarthy said.

“You have got to make decisions on what you think the long run oil price is.”

If those energy stocks were flat instead of down, the broader market would be up by closer to one per cent, rather than only less than half a per cent.

Santos was down 14 cents to $7.31, Woodside Petroleum had fallen 15 cents to $35.99 and Oil Search was 17 cents lower at $7.03.

Global miner BHP Billiton had gained 19 cents to $28.30, Rio Tinto had jumped up by $1.18 on the back of improving iron ore prices to $57.66.

Among the banks, Commonwealth Bank was up 13 cents at $85.24, NAB lifted 25 cents to $33.67, Westpac gained eight cents to $32.77 and ANZ picked up 20 cents to $31.92.

Qantas had slumped four cents to $2.52 amid news its biggest investor, Franklin Resources, had reduced its stake in the airline.

KEY FACTS

* At 1210 AEDT on Thursday, the benchmark S&P/ASX200 index was up 19.9 points, or 0.37 per cent, at 5,373.5 points.

* The broader All Ordinaries index was up 18.5 points, or 0.35 per cent, at 5,353 points.

* The March share price index futures contract was 18 points higher at 5,333 points, with 11,785 contracts traded.

* National turnover was 579 million securities worth $1.3 billion.