Following a positive lead from Wall St overnight, the local share market is stronger at midday with the top banks like NAB and major miners like BHP leading the gains.
The S&P/ASX200 index is up 55 points at 4,491 and on the futures market the SPI 200’s up 51 points.
In economic news: RBA Governor Glenn Stevens says that interest rates will not rise just because house prices are on the way up, but that the central bank will increase rates when the time is right.
Appearing before the Federal House of Representatives standing committee on economics, Mr Stevens says that Australia may be in for another quarter of contraction in GDP by the end of the year. But says the economy has remained resilient despite the global recession.
To business news at midday: Airport owner Macquarie Airports (ASX:MAP) has reported a fall in earnings before interest, tax, depreciation and amortization for its core portfolio for the six months to June 30 compared to the same period last year. The portfolio is made up of Sydney, Copenhagen, Brussels and Bristol airports. Sydney airport performed the best with earnings before interest, tax, depreciation and amortisation rising 2 per cent to $325.8 million for the half year. Bristol airport was the worst performer in the portfolio recording a 20 per cent fall to $13 million pounds. Macquarie Airports says Sydney delivered a sound performance in the first half of 2009 thanks to active management and excellent cost control. Macquarie Airports shares rose 1.67 per cent to $2.43.
Casino operator Crown Ltd (ASX:CWN) says that Melco Crown Entertainment, its joint venture business in Macau, has successfully conducted a US$200 million equity placement. The placement will increase to US$220 million if the over allotment option is exercised. Following the Melco Crown placement, Crowns ownership in Melco Crown will be diluted from 36.4 per cent to 33.5 per cent if the over allotment option is exercised. Melco Crown Entertainment is a joint venture between Crown and Hong Kong’s Melco International Development. Crown shares lost 1.6 per cent to $7.40.
Turning now to market indices: The best performing sector at midday is the Telco Services index up 22 points to 1,251. Shares in Macquarie Telecom Group up 2.45 per cent at $3.34. Shares in Telstra and IINet are also stronger at noon.
The worst performing sector at midday is the Real Estate Investment Trust index, down 4 points at 816. Shares in GPT Group down 4.27 per cent to $0.56. Shares in Westfield Group and Dexus Property Group are also lower at noon.
Looking to New Zealand and the NZSX50 is 26 points higher. Taking a look at the top five stocks by value on the NZSX50: Fletcher Building tops the list, stock up 2.53 per cent at $8.10, followed Telecom of New Zealand, South Canterbury Finance, AMP NZ Office Trust and Fisher & Paykel Appliances.
To gold and the dollar: Gold is currently trading at $958.55 US an ounce and the Aussie dollar is trading at 84.62 US cents.
