Aussie investors are soaking up the budget news with small business, childcare and telcos looking to be the likely winners. Retailers are also spiking on hopes small businesses will spend up big on white goods and equipment to get a $20,000 tax break.
Negative leads from overseas markets have been shaken off with the local bourse trading 0.41 per cent up at noon.
Westpac is proving a drag as it trades ex-dividend.
The S&P/ASX 200 index is 23 points up at 5,698. On the futures market the SPI is 25 points higher
Company news
SurfStitch Group Limited
(ASX:SRF) say they will pay $13.8 million in cash and 4.8 million shares to acquire Magicseaweed and Stab Magazine. The online surfwear retailer hopes the online surf content network will drive sales to SurfStitch and traffic across all platforms. A fully underwritten institutional placement will raise the $37.5 million needed to fund the acquisition. The company also reaffirmed full year revenue guidance of $199 million. Shares in SurfStitch last traded at $1.55 ahead of a trading halt.
AMA Group Limited
(ASX:AMA) say that they have made an agreement with one of the largest privately owned accident repair networks in Australia. The deal with Woods repair centres will see AMA provide all services to Woods for six months with an option to buy at the end. AMA would pay an upfront-cash payment of $2 million with an earnout due 2-3 years later. Shares in AMA are trading up 3.06 per cent at $0.51.
Best amd worst performers
The best performing sector is energy, gaining nearly 2 per cent to 11,808. Shares in Sundance have risen 4.92 per cent and are trading at $0.69. Shares in WorleyParsons and Karoon Gas are also stronger.
The worst performing sector is real estate investment trusts, falling 0.4 per cent to 1,265. Shares in SCA Property Group have fallen 1.4 per cent, trading at $2.46. Shares in Novion and Federation Centres are also lower.
Gold and the dollar
Gold is trading at $US1,192 an ounce.
The Australian dollar is buying 79.83 US cents.
