Aussie shares are higher at midday, supported by gains in the miners like top miners BHP and Rio Tinto, and after Wall St finished off its best week in four months on Friday.
The S&P/ASX200 index is up 46 points at 4,047 and on the futures market the SPI 200’s up 33 points.
In economic news: The ABS reports that Australia’s producer price index at the final stage of production fell 0.8 per cent in the June quarter, after a 0.4 per cent in the March quarter. The index rose 2.1 per cent for the year.
To business news at midday: Iron ore miner BC Iron Ltd (ASX:BCI) says it has received in-principle endorsement from Fortescue Metals Group Ltd(ASX:FMG) for the company’s recently completed feasibility study on its Nullagine Iron Ore project in the Pilbara, Western Australia. BC Iron says the study confirmed that Nullagine is an economically and technically robust direct shipping ore project based on a probable ore reserve of 36 million tonnes at 56.9 per cent iron. The miner says the Nullagine project will commence production at an initial rate of 1.5 million tonnes per annum, ramping up to 3 million tonnes per annum and then 5 million tonnes per annum as roads and infrastructure are upgraded. BCI Iron shares gained 0.98 per cent to $1.03.
Investment company Djerriwarrh Investments Ltd (ASX:DJW) has posted a $14.1 million loss for the year to June 30 2009, down from a profit of $66.7 million the year before. The company says the result was due to an impairment charge of $49.7 million, without this the company would have posted a profit of $35.6 million. Djerriwarrh says the value of its portfolio declined 15.9 per cent over the year compared to the 20.1 per cent fall in the general market. The company says despite the pressure of adverse economic conditions it will keep its final dividend at 16 cents a share, in line with last year. Shares in Djerriwarrh Investments rose 3.37 per cent at $3.99.
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 196 points to 10,469. Shares in Centamin Egypt up 9.54 per cent at $1.895 cents. Shares in Sandfire Resources and Aquarius Platinum are also stronger at noon.
One of the sectors making the smallest gain at midday is the Industrials index up 24 to 3,076. Shares in Transpacific Industries Group down 2.64 per cent to $1.255. Shares in Downer EDI and United Group are also lower at noon.
Looking to New Zealand and the NZSX50 is 8 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand tops the list, stock down 0.37 per cent at $2.70, followed by ANZ, Fletcher Building, Sky City and Ryman Healthcare.
To gold and the dollar: Gold is currently trading at $940.80 US an ounce and the Aussie dollar is trading at 80.68 US cents.
