The local share market is higher at midday, supported by gains in mining stocks on stronger metal prices.
The S&P/ASX200 index is up 35 points at 4,226 and on the futures market the SPI 200’s up 27 points.
In economic news: The TD Securities - Melbourne Institute monthly inflation gauge rose 0.9 per cent in July, following a 0.4 per cent increase in June. The rise was the largest in the seven years of the series.
To business news at midday: Property investor GPT Group (ASX:GPT) says it will exit the European component of its joint venture with Babcock & Brown by paying a dividend in the form of a security. The company says the decision removes the European Joint Venture, which represents 80 per cent of GPT’s exposure to the Babcock & Brown Joint Venture, from GPT’s balance sheet. The company says it expects to write-down the value of the Joint Venture from $1.16 billion at December 2008 to a nominal amount at June 30 2009 and will see gearing increase by around 2 per cent. GPT says its distribution guidance for the financial year ending December 31 2009 is not impacted by the special distribution, and remains at 4.5 cents a security. GPT Group shares fell 1.82 per cent to $0.54.
Origin Energy Ltd (ASX:ORG) says it achieved record annual production and sales revenue for its Exploration and Production business and a 50 per cent annual increase in 2P coal seam gas reserves for the Australia Pacific LNG joint venture. Origin says annual production rose 4 per cent and sales revenue for the year increased 10 per cent to $572 million compared with the prior financial year. For the June quarter the company says production rose 16 per cent and revenue climbed 13 per cent compared to the March quarter. Origin Energy shares rose 1.25 per cent to $14.56.
Turning now to market indices: the best performing sector at midday is the Financials Excluding Real Estate Investment Trust index up 72 points to 4,633. Shares in ANZ up 3.1 per cent at $18.29. Shares in AMP and IAG are also stronger at noon.
The worst performer at midday is the Telco Services index, down 31 points at 1,220. Shares in Telecom of New Zealand down 2.64 per cent to $2.21. Shares in Telstra and Singapore Telecommunications are also lower at noon.
Looking to New Zealand and the NZSX50 is 32 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand is at the top, stock down 0.7 per cent at $2.82, followed by Fletcher Building, Westpac, APN News & Media and Fisher & Paykel Appliances.
To gold and the dollar: Gold is currently trading at $937.25 US an ounce and the Aussie dollar is trading at 82.77 US cents.
