The local share market is slightly higher at midday, recovering from earlier lows after investors took a positive view to the Commonwealth Banks earning results and outlook.
The S&P/ASX200 index is up 9 points at 4,341 and on the futures market the SPI 200’s down 3 points.
In economic news: The Westpac/Melbourne Institute consumer sentiment index rose 4 index points to a read of 113.4 points in August.
To business news at midday: Babcock & Brown Infrastructure Group (ASX:BBI) has forecast a pre-tax asset impairment charge of between $900 million and $920 million. The company says the charges for the year to June 30 include an impairment arising for the loss on the sale of its Euroports business announced last month. Babcock & Brown Infrastructure says a key reason for the impairment charge was the impact of global conditions across its portfolio, particularly in the Northern Hemisphere ports. Babcock & Brown Infrastructure Group (ASX:BBI) shares dropped 2.86 per cent to 6.8 cents.
Retirement Living company Aevum Ltd (ASX:AVE) has posted a net loss of $12.2 million for the year to June 30, but says it won’t provide earnings guidance for fiscal 2010 because of abnormal market conditions. The company’s net loss of $12.2 million for fiscal 2009 compares to a profit of $28.55 million in fiscal 2008. The company says it remains confident of continued growth in its operating cash flow and expects 10 per cent growth in fiscal 2010. However due to abnormal market conditions Aevum did not provide any earnings guidance for fiscal 2010, saying the situation will be reviewed before its October 23 annual general meeting. Aevum declared a final dividend of 2 cents. Shares in Aevum fell 7.09 per cent to $1.31.
Turning now to market indices: The best performing sector at midday is the Financials excluding Real Estate Investment Trust index up 44 points to 4,943. Shares in the Commonwealth Bank up 2.46 per cent at $45.01. Shares in Westpac and Suncorp-Metway are also stronger at noon.
The worst performing sector at midday is the Real Estate Investment Trust index, down 10 points at 816. Shares in Stockland down 3.23 per cent to $3.30. Shares in Mirvac Group, and Westfield Group are also lower at noon.
Looking to New Zealand and the NZSX50 is 9 points higher. Taking a look at the top five stocks by value on the NZSX50: at the top is Telecom of New Zealand, stock down 0.37 per cent at $2.73, followed by Fletcher Building, Westpac, Mainfreight and Fisher & Paykel Healthcare.
To gold and the dollar: Gold is currently trading at $948.40 US an ounce and the Aussie dollar is trading at 82.9 US cents.
