Aussie shares are higher at midday following a positive lead from Wall St overnight. Top miner BHP led the gains with the major banks like NAB also helping to support the market.
The S&P/ASX200 index is 92 points higher at 3,829 and on the futures market the SPI 200’s up 93 points.
In economic news: NAB’s monthly business survey for June showed that business conditions improved 12 index points to a read of minus 2.
To business news at midday: Telco Telstra Corporation Ltd (ASX:TLS) has reportedly won a $146 million five year contract to provide a high speed broadband network to link a number of catholic schools and education offices together. The Australian Financial Review reports that Telstra is to build and manage a fibre-based, high speed broadband network linking 1550 Catholic schools and education offices. The paper says Catholic Network Australia will link five data centres around Australia allowing schools to share content and resources. Telstra shares gained 0.3 per cent to $3.38.
Health care company Sonic Healthcare Ltd (ASX:SHL) says it has signed an agreement to acquire German laboratory company Lademannbogen Laboratory. Sonic says the laboratories revenue for the 2009 calendar year is expected to be around 20 million Euros. The company says the purchase price comprises an upfront cash payment of 6.5 million Euros and a performance based earn-out of up to 4.5 million Euros, payable 18 months after settlement. CEO Dr Colin Goldschmidt says with the company’s well-established presence in the Northern German market, Lademannbogen laboratory fits with Sonic’s ongoing growth strategy and will add value to sonic at operational and technical levels. Shares in Sonic Healthcare rose 0.44 per cent to $11.46.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Materials index up 297 points to 9,668. Shares in Murchison Metals are up 5.51 per cent at $1.245. Shares in Avoca Resources and Equinox Minerals are also higher at noon.
The sector at midday with the smallest gain is the Health Care index up 38 points to 7,713. Shares in ResMed down 3.88 per cent to $4.96. Shares in Cochlear and Blackmores are also lower at noon.
Looking to New Zealand and the NZSX50 is 5 points higher. Taking a look at the top five stocks by value on the NZSX50: Fletcher Building tops the list, stock up 0.15 per cent at $6.57, followed by Telecom of New Zealand, Westpac, Fisher & Paykel Healthcare and Lion Nathan.
To gold and the dollar: Gold is currently trading at $918.80 US an ounce and the Aussie dollar is trading at 78.35 US cents.
