The local share market is higher at midday, lifted by resource companies like BHP and Rio Tinto, and following a better than expected U.S. manufacturing report that lifted optimism that the economy is on its way to a recovery.
The S&P/ASX200 index is up 64 points at 4,328 and on the futures market the SPI 200’s up 77 points.
In economic news: The ABS Australian house price index rose 4.2 per cent for the June quarter compared to the previous quarter. And retail sales fell 1.4 per cent for the month of June compared to the month before.
To business news at midday: Australia and New Zealand Banking Group Ltd (ASX:ANZ) says acquired selected RBS businesses in Asia for around US$550 million. The acquisition includes the RBS retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong, and the institutional businesses in Taiwan, the Philippines and Vietnam. ANZ will fund the deal from proceeds of its recent $4.4 billion capital raising. CEO Mike Smith says the acquisition of these RBS businesses is a further stepping stone in the company’s super regional strategy and creates a new platform for its retail and wealth businesses in Asia. ANZ shares gained 1.84 per cent to $19.35.
Real estate investor ING Industrial Fund (ASX:IOF) has written down the value of its portfolio by $454 million at June 30, following internal valuations undertaken for all 29 of the Fund’s investments. CEO Tino Tanfara says valuation figures for the six month period have been characterised by limited transactional evidence, concerns over effective rents and a lack of liquidity in debt markets. The fund says the value of its domestic assets increased 13.9 per cent in the six months to June 30, however its U.S. assets decreased in value by 17.4 per cent and its European investments decreased 4.5 per cent over the period. ING Office Fund shares rose 2.06 per cent to $0.495.
Turning now to market indices: the best performing sector at midday is the Materials index up 386 points to 11,524. Shares in Minara Resources up 11.02 per cent at $1.31. Shares in Kagara and Incitec Pivot are also stronger at noon.
The worst performer at midday is the Utilities index, down 101 points at 4,055. Shares in Duet Group down 3.3 per cent to $1.61. Shares in Challenger Infrastructure Fund and AGL Energy are also lower at noon.
Looking to New Zealand and the NZSX50 is 53 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand is at the top of the list, stock steady at $2.83, followed by Fletcher Building, Sky City, Fisher & Paykel Healthcare and Auckland Airport.
To gold and the dollar: Gold is currently trading at $957.60 US an ounce and the Aussie dollar is trading at 84.63 US cents.
