Negative leads from US markets poised for a Greek debt default the Australian share market opened lower but has since jumped strongly to be 0.49 per cent up at noon.
IAG is the big winner on the local bourse today after securing investment from Warren Buffet’s Berkshire Hathaway. Gains in the big four banks are also adding to the buoyant market mood.
Meanwhile investors are looking ahead to RBA board minutes released later today.
The S&P/ASX 200 index is 28 points up at 5,567. On the futures market the SPI is 25 points higher.
Company news
Westpac Banking Corporation lImited
(ASX:WBC) says it will sell down it’s stake in BT Investment Management. Westpac currently holds around 59 per cent of stock and wants to reduce it to 40 per cent or less. A bookbuild for institutional investors will be held with part of the shareholder also to be offered to Westpac and BTIM retail share holders. Shares in Westpac are trading 1.5 per cent higher at $32.20.
Mustang Resources Limited
(ASX:MUS) have announced that they have successfully recovered diamonds of gem quality at their Save River Diamonds Project in Mozambique. It is thought the diamonds have travelled down the Save or Runde Rivers from Zimbabwe. Mustang has agreed to acquire majority interests in two diamond prospecting and explorations licences in Mozambique. Shares in Mustang are trading steady at $0.28.
Best and worst performers
The best performing sector is financials excluding real estate investment trusts, gaining 1.1 per cent to 7,364. Shares in Insurance Australia Group are the top winner today rising 4.76 per cent to $5.83 after the Berkshire Hathaway tie-up. Shares in Cover-More Group and Bendigo & Adelaide Bank are also stronger.
The worst performing sector is energy, falling 0.4 per cent to 11,331. Shares in Karoon Gas have fallen 2.4 per cent, trading at $2.41. Shares in Oil Search and Whitehaven Coal are also lower.
Gold and dollar
Gold is trading at $US1,187 an ounce.
The Australian dollar is buying 77.76 US cents.
