Recovering from a weaker start this morning, Aussie shares are steady at midday, supported by gains in the banks after investment bank Macquarie Group said its operations are continuing to improve, and NAB agreed to acquire 80 per cent of Goldman Sachs JBWere’s private wealth management business.
The S&P/ASX200 index is up almost a point at 4,170 and on the futures market the SPI 200’s down 7 points.
In economic news: The Housing Industry Association reports that sales of new homes rose 0.5 per cent in June, following a 5.7 per cent fall in May.
To business news at midday: National Australia Bank (ASX:NAB) has agreed to purchase 80.1 per cent of Goldman Sachs JBWere’s private wealth management business in Australia and New Zealand. The bank says Goldman Sachs JBWere will retain the remaining 19.9 per cent of the business, which will be branded JBWere. NAB will outlay $99 million for JBWere, a leading wealth advisory business, with additional performance related consideration payable dependant on revenues generated by the business over a period of three years. The bank says JBWere will become a portfolio business of its wealth division MLC and NAB Wealth. NAB shares fell 0.17 per cent to $23.04.
Property company Goodman Group (ASX:GMG) has appointed Ian Ferrier as independent chairman of the board. Mr Ferrier has been acting chairman since former chairman, David Clarke, announced his leave of absence due to illness on November 28 2008. Mr Clarke retired as a director of the board on July 2 2009. Goodman Group shares gained 2.22 per cent to $0.46.
Turning now to market indices: the best performing sector at midday, is the Consumer Staples index up 63 points to 7,177. Shares in Goodman Fielder up 2.16 per cent at $1.42. Shares in Woolworths and Metcash are also stronger at noon.
The worst performer at midday is the Materials index is down 155 points at 10,963. Shares in Medusa Mining down 5.26 per cent to $2.52. Shares in Avoca Resources and Independence Group are also lower at noon.
Looking to New Zealand and the NZSX50 is 19 points lower. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock down 1.74 per cent at $2.83, followed by Sky City, Fisher & Paykel Appliances, Contact Energy and Fisher & Paykel Healthcare.
To gold and the dollar: Gold is currently trading at $940.20 US an ounce and the Aussie dollar is trading at 82.76 US cents.
