The local share market is higher at midday, boosted by gains in the financials like top banks the Commonwealth Bank and NAB following CBA’s positive earnings result yesterday.
The S&P/ASX200 index is up 50 points at 4,393 and on the futures market the SPI 200’s up 59 points.
In economic news: The ABS says Australian average weekly earnings rose 1.2 per cent in the three months to May, up 6.1 per cent compared to the same period last year.
To business news at midday: Oil and gas producer Santos Ltd (ASX:STO) says it has discovered gas in the Browse Basin offshore Western Australia. The Burnside 1ST1 exploration well in permit WA-281-P has encountered a 65 metre gross gas column in the primary target, which is the Brewster Sandstone. Santos says further work will now be done to understand the reservoir characteristics and an appraisal plan developed to define the size of the resource. Shares in Santos gained 2.85 per cent to $14.79.
Gas explorer and producer Arrow Energy Ltd (ASX:AOE) says it continues to have discussions with parties about a potential takeover but says it has not received an offer nor is it aware if one will be made. In response to an ASX query Arrow says it is in talks with parties with respect to the potential monetization options for its coal seam gas resources and says these talks have included discussions with respect to potential change of control transactions, however the company is unaware as to whether any change of control proposal will be forthcoming. Arrow says it expects to post a profit before tax of around $540 million for the full year. Arrow Energy shares rose 8.94 per cent to $4.51.
Turning now to market indices: The best performing sector at midday is the Financials excluding Real Estate Investment Trust index up 113 points to 5,042. Shares in the Bendigo & Adelaide Bank up 5.37 per cent at $8.44. Shares in Challenger Financial Services Group and Platinum Asset Management are also stronger at noon.
The worst performing sector at midday is the Telco Services index, down 10 points at 1,233. Shares in Singapore Telecommunications down 1.11 per cent to $2.67. Shares in Telstra, and Telecom of New Zealand are also lower at noon.
Looking to New Zealand and the NZSX50 is 47 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock steady at $2.76, followed by Fletcher Building, Westpac, Guinness Peat and ANZ.
To gold and the dollar: Gold is currently trading at $950.45 US an ounce and the Aussie dollar is trading at 83.45 US cents.
