The local share market is higher at midday following gains on Wall St overnight after positive housing and manufacturing reports fuelled hopes the global economy may be on the mend. Gains in top miners BHP and Rio Tinto helped to support the market in trade this morning.
The S&P/ASX200 index is 17 points higher at 3,891 and on the futures market the SPI 200’s down 1 point.
In economic news: The ABS reports that Australia’s balance of goods and trade services for May showed a deficit of $556 million.
To business news at midday: Mining giant Rio Tinto Ltd (ASX:RIO) says it has received strong support from shareholders in the U.K. who took up nearly all of its London shares on offer under the miner’s massive US$15.2 billion issue. Rio says it received valid acceptances representing around 96.97 per cent of the total number of new Rio Tinto plc, its U.K arm of the business shares offered under the rights issue. China’s Chinalco says it has taken up its full entitlement to the offer. Rio Tinto abandoned its proposed deal with Chinalco to instead undertake the rights issue and a joint venture with BHP. Rio Tinto shares rose 1.38 per cent to $52.31.
Major Australian bank Westpac Banking Corporation (ASX:WBC) has cancelled its retail shareholders benefits package due to a very low take up of the benefits package and increasing costs. The bank says the package ended on June 30 2009. In November 2008 the company suspended the package and asked shareholders to provide feedback to assist in a review of the package. Westpac says that while there was some support for the package, many of the benefits were seen as of little relevance to their needs and of little value. Westpac shares dropped 0.46 per cent to $19.59.
Turning now to market indices: The best performing sector at midday, is the Real Estate Investment Trust index up 13 points to 737. Shares in Stockland are up 3.26 per cent to $3.17. Shares in Westfield Group and CFS Retail Property Trust are also higher at noon.
The worst performing sector at midday is the Energy index down 65 points to 14,423. Shares in Arrow Energy are down 3.76 per cent to $3.33. Shares in Caltex Australia and Straits Resources are also lower at noon.
Looking to New Zealand and the NZSX50 is 24 points higher.
Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock up 0.37 per cent at $2.74, followed by Fletcher Building, Telstra, Vector and ANZ.
To gold and the dollar: Gold is currently trading at $940.65 US an ounce and the Aussie dollar is trading at 80.64 US cents.
