Midday: Aus shares surge higher on resources

Market Reports

Despite negative leads from US markets, the Australian share market opened higher and is 0.52 per cent up at noon. Resource stocks are leading the charge after commodity prices including iron ore and oil rose overnight. 
 
The S&P/ASX 200 index is 33 points up at 5,959. On the futures market the SPI is 30 points higher.  
 
Company news
 
Emeco Holdings Limited (ASX:EHL) says that it has received an unsolicited, non-binding proposal from Orionstone to merge the two companies. Orionstone is a privately run company in direct competition with Emeco. The nil-premium proposal is incomplete and does not include funding details. Emeco say they are exploring options and remind the market that as outlined in the last AGM, the company’s new strategy involves acquisitions. Previously identified targets include Orionstone itself. Shares in Emeco are trading 9.09 per cent higher at $0.12. 
 
NewSat Limited (ASX:NWT) has today admitted that it has not been able to reach an agreement regarding financing of its Jabiru-1 satellite project and it is still seeking alternative financing and avenues to bridge the lending gap. The pure play satellite company has engaged Peter J Solomon Company to assist with solutions to raise further capital. NewSat has also appointed Mark Spragg as CFO following the resignation of Linda Dillon last week. NewSat has been in a voluntary trading halt since the 26th March as it explores it’s financing options, the stock last traded at $0.12.   
 

Best and worst performers

The best performing sector is energy, gaining 2.3 per cent to 11,145. Shares in Beach Energy have risen 6.02 per cent and are trading at $1.15. Shares in Oil Search and Worley Parsons are also stronger. 
 
The worst performing sector is real estate investment trusts, falling 0.12 per cent to 8,332.  Shares in Medibank have fallen 1.05 per cent, trading at $2.35. Shares in Insurance Australia and ANZ Bank are also lower. 
 
Gold and the dollar

Gold is trading at $US1,211 an ounce.
The Australian dollar is buying 76.55 US cents.

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