Following positive leads from US markets reaching new highs since the dot com boom, the Australian share market opened strongly and is 0.69 per cent up at noon.
Gains in the iron ore price are sending the miners higher with Fortescue Metals leading the charge in morning trade following an 11 per cent jump on Friday following last week’s successful $2.3 billion bond issue.
The S&P/ASX 200 index is 40 points up at 5,973. On the futures market the SPI is 28 points higher.
Company news
Ten Network Holdings Limited
(ASX:TEN) has warned investors its dealings with Foxtel may not result in a transaction. Responding to an article in the AFR which indicted Foxtel is close to taking a 15 per cent stake in the embattled television broadcaster at 18 cents per share, Ten urged caution saying any deal may not be acceptable. Shares in Ten Network are trading up 2.44 per cent higher at $0.21.
And TPG Telecom Limited
(ASX:TPM) has seen a big slump in its share price since M2 Group confirmed it has made a rival bid for iiNet. M2 Group has made an all scrip offer of $11.52 per share in competition with the all cash offer of $8.60 per share that iiNet accepted. Shares in iiNet have jumped over ten per cent in morning trade. Shares in TPG are trading 4.58 per cent down at $9.16.
Best and worst performers
All sectors are higher in morning trade, The best performing sector is materials, gaining 1.4 per cent to 9,583. Shares in Fortescue have risen 7 per cent and trading at $2.38. Shares in Western Areas and Sirius Resources are also stronger.
The sector with the least gains is industrials adding 0.2 per cent to 4,752. Shares in UGL have fallen 2.99 per cent, trading at $1.63. Shares in GWA Group and Brambles are also lower.
Gold and the dollar
Gold is trading at $US1,182 an ounce.
The Australian dollar is buying 78.31 US cents.
