The Australian share market is higher at midday, investors optimistic after some better than expected company earnings results and upbeat outlooks. Financial stocks gained after QBE and AMP reported stronger than anticipated results.
The S&P/ASX200 index is up 23 points at 4,397 and on the futures market the SPI 200’s up 32 points.
In economic news: According to the ABS Australia’s international merchandise imports rose 6 per cent to $16.7 billion in July.
To business news at midday: Insurer QBE Insurance Group Ltd (ASX:QBE) has reported a 19 per cent rise in half year earnings thanks largely to the benefit of premium growth in all major markets. Net profit for the six months to June 30 came to $1.02 billion, up from $859 million recorded for the same period a year ago. The company says gross written premiums rose 22 per cent to $8.06 billion. QBE declared an interim dividend of 62 cents a share. QBE Insurance shares gained 6.85 per cent to $22.16.
Grocery conglomerate Wesfarmers Ltd (ASX:WES) has reported a 44 per cent jump in full year net profit to over $1.5 billion. The company reported operating revenue of $50 billion for the period, up 52 per cent on last year. Managing director Richard Goyder says the company is cautiously optimistic about the economic outlook in fiscal 2010. Mr Goyder says the company expects fiscal 2010 earnings for its Resources business to reduce significantly due to lower export prices, with the remaining businesses expected to improve. Wesfarmers declared a final dividend of 60 cents a share. Wesfarmers shares fell 3.06 per cent to $25.69.
Turning now to market indices: The best performing sector at midday is the Energy index up 349 points to 15,642. Shares in Woodside Petroleum up 5.76 per cent at $46.83. Shares in Oil Search and Origin Energy are also stronger at noon.
One of the worst performing sectors at midday is the Health Care index, down 120 points at 8,348. Shares in Living Cell Technologies down 3.45 per cent to $0.14. Shares in CSL and Ansell are also lower at noon.
Looking to New Zealand and the NZSX50 is 8 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock up 1.48 per cent at $2.74, followed by Fletcher Building, Guinness Peat, ANZ, and South Canterbury Finance.
To gold and the dollar: Gold is currently trading at $942.65 US an ounce and the Aussie dollar is trading at 83.03 US cents.
