The local share market is higher at midday, shrugging off a weak lead from Wall St overnight, with the major miners BHP and Rio Tinto leading the gains on stronger metals prices.
The S&P/ASX200 index is up 42 points at 4,307 and on the futures market the SPI 200’s up 49 points.
In economic news: The ABS says the official jobless rate remains steady at 5.8 per cent in July, unchanged from 5.8 per cent in June. Expectations were for a rise to 6 per cent.
To business news at midday: Retail investor GPT Group (ASX:GPT) says it plans to focus completely on its Australian assets, and will over-time exit all of its overseas non-core investments. CEO Michael Cameron says the company’s strategy focuses on the active ownership of high quality Australian retail, office and industrial assets, supported by the Group’s development and management capabilities. Mr Cameron says today’s announcement regarding the company’s strategic direction is an important step in restoring GPT to a position of leadership in the Australian listed property sector. GPT Group shares gained 4.95 per cent to $0.53.
Engineering and property services company United Group Ltd (ASX:UGL) says it has refinanced $161 million of three year debt facilities with three of Australia’s big four banks. The company says the new facilities, due to mature on July 31 2012, will replace facilities due to expire on July 8 2010. CEO Richard Leupen says coupled with the company’s long-term debt in the U.S. private placement market, these facilities will help UGL maintain the strength and flexibility of its balance sheet over coming years. United Group shares rose 0.34 per cent to $11.74.
Turning now to market indices: the best performing sector at midday is the Materials index up 152 points to 11,276. Shares in Alumina up 9.79 per cent at $1.795. Shares in Sandfire Resources and Minara Resources are also stronger at noon.
The worst performer at midday is the Consumer Staples index, down 16 points at 6,966. Shares in Foster’s Group down 1.67 per cent to $5.31. Shares in Coca-Cola Amatil and Woolworths are also lower at noon.
Looking to New Zealand and the NZSX50 is 10 points lower. 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 down 0.35 per cent at $2.84, followed by Fletcher Building, Fisher & Paykel Healthcare, Lion Nathan and ANZ.
To gold and the dollar: Gold is currently trading at $964.25 US an ounce and the Aussie dollar is trading at 84.45 US cents.
