The S&P/ASX200 rose 4.8 points by midday, up 0.05 per cent, to 8,849.5, as the broader All Ordinaries advanced 6.3 points, or 0.07 per cent, to 9,054.6.
The subdued improvement came after the top-200's best day in weeks on Friday, supported by a fresh round of buying to kick off the new financial year, which historically has made July the index's best month, IG market analyst Tony Sycamore said.
"The rally was also supported by a softer-than-expected US jobs report that helped ease concerns around an imminent Fed rate hike," Mr Sycamore said.
"Adding to the support, three of the big banks have paid dividends into shareholders' accounts over the past fortnight, much of which often finds its way back into the market soon after."
Energy stocks outperformed, up 1.2 per cent with strong leads from oil and gas giants Santos and Woodside, while refinery operators Ampol and Viva edged either side of break-even.
Oil prices are trading below their pre-Iran conflict price, with the Brent benchmark just above $US72 a barrel after OPEC+ agreed to lift its output targets from August while exports sent through the Hormuz Strait continue to recover.
The heavyweight financials sector slipped more than 0.3 per cent as three of the big four banks lost ground and NAB eked a less than 0.1 per cent boost.
Basic materials were broadly flat, as gold miners continued to recover on a less-hawkish outlook for US interest rates, which also boosted metals prices via a weaker greenback.
Gold is trading hands at $US4,185 ($A6,039) an ounce, its best price in nearly two weeks, while Vault Minerals outperformed the sub-sector with a more than 13 per cent charge after receiving a $5.6 billion buyout offer from Genesis Minerals, outshining an offer from Regis Resources.
Rio Tinto and Fortescue both improved, while BHP continued to come off the boil from its recent record-breaking run.
Local IT stocks were also hot, the segment up one per cent following rallies in WiseTech Global, Xero and data centre play NextDC.
Consumer staples and utilities stocks were some of the weakest on the bourse, as investors unwound some of their defensive recent positioning.
In company news, Dexus gained 1.5 per cent after its weighted average capitalisation rate improved in both its office and industrial portfolios in the 2026 financial year.
Helia has been selected as ING's exclusive lenders mortgage insurance provider for another four years, roughly 12 months after warning of a potential loss of contract.
The Australian dollar is buying 69.30 US cents, down from 69.48 US cents on Friday at 5pm.
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