The local share market is higher at midday following a strong lead from Wall St at the end of last week after a key U.S. jobs report showed an unexpected fall in the unemployment rate for July. The report adding to optimism that the U.S. economy may be starting to come out of recession.
The S&P/ASX200 index is up 44 points at 4,344 and on the futures market the SPI 200’s up 40 points.
In economic news: The ABS reports that housing finance rose 1.1 per cent in June. A Reuters poll forecast a rise of 1.8 per cent.
To business news at midday: Macquarie Leisure Trust Group (ASX:MLE) says after recent revaluations the total value of its tangible assets has decreased 9 per cent to $620 million at June 30 from $681 million prior to devaluations. Chairman Neil Balnaves says the lower valuations reflect earnings trends and a general softening in cap rates reflective of current market conditions. Macquarie says its gross debt currently totals $192 million, and will be further reduced after completing its share purchase plan and completion of remaining AMF freehold sites in its AMF freehold portfolio. Shares in Macquarie Leisure Trust Group rose 1.07 per cent to $1.415.
Waste management company Transpacific Industries Group Ltd (ASX:TPI) says it expects to report earnings before interest, tax, depreciation and amortization of $447 million, down on last year but inline with previous guidance. The company says cashflow from operations is expected to be $200 million, including $105.5 million disclosed in its first half results. Pro-forma total net debt as at June 30 is expected to be approximately $1.6 billion. Transpacific recently raised $801 million via an entitlement offer to institutional investors at an offer price of $1.20 a share, with the proceeds used to pay down debt. Transpacific Industries Group shares fell 2.49 per cent to $1.175.
Turning now to market indices: All sectors are in positive territory at midday, however the best performing sector is the Real Estate Investment Trust index up 29 points to 828. Shares in Stockland up 4.13 per cent at $3.28. Shares in Westfield Group and Mirvac Group are also stronger at noon.
The sector with the smallest gain at midday is the Utilities index, up 5 points at 4,047. Shares in Solco down 3.64 per cent to 5.3 cents. Shares in Envestra and AGL Energy are also lower at noon.
Looking to New Zealand and the NZSX50 is 16 points higher. Taking a look at the top five stocks by value on the NZSX50: at the top of the list if Fletcher Building, stock down 1.37 per cent at $7.22, followed by Telecom of New Zealand, Westpac, Auckland Airport and AMP.
To gold and the dollar: Gold is currently trading at $954.85 US an ounce and the Aussie dollar is trading at 83.92 US cents.
