The Australian share market is higher at midday with the major miners like BHP and Rio Tinto leading the gains on growing optimism for the global economic outlook.
The S&P/ASX200 index is up 107 points at 4,397 and on the futures market the SPI 200’s up 124 points.
To business news at midday: Professional Services company WorleyParsons Ltd (ASX:WOR) today announced a 13.6 per cent rise in net profit after tax for the year but says market uncertainty mean it probably won’t repeat the result this year. Net profit after tax for the 12 months to June 30 came to $390.5 million, up from $343.9 million last year. Earnings before, interest, tax, depreciation and amortisation climbed 18 per cent to $693.2 million with revenue up 27 per cent to $6.2 billion. The company says it at this stage the continuing uncertain market conditions make it unlikely that that it can repeat this year’s result in fiscal 2010 and says it therefore expects to report a modest decrease in earnings in 2010, with earnings weighted to the second half of the financial year. WorleyParsons shares lost 3.5 per cent to $25.90.
Toll road operator ConnectEast Group (ASX:CEU) has announced a capital raising after posting a $531 million loss for the year to June 30. The result includes a write-down on the carrying value of the EastLink toll road concession of $400 million to approximately $2.9 billion. Earnings before interest, tax, depreciation and amortisation, before repairs and maintenance, came to $77 million for the year. The capital raising will comprise of a $324 million institutional component and a $97 million retail component, at an offer price of 33 cents a share. The proceeds will be used to repay debt. ConnectEast Group shares are in a trading halt and last traded at $0.39.
Turning now to market indices: Majority of sectors are in positive territory at midday, however the best performing sector is the Consumer Discretionary index up 49 points to 1,459. Shares in Photon Group up 6.27 per cent at $1.78. Shares in Wotif.com Holdings and Fairfax Media are also stronger at noon.
The only sector in the red at midday is the Telco Services index, down 26 points at 1,167. Shares in Enerji down 4.76 per cent to $0.10. Shares in Telstra are lower while shares in Amcom Telecommunications are steady.
Looking to New Zealand and the NZSX50 is 22 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand is top of the list, stock up 0.76 per cent at $2.66, followed by Westpac, ANZ, Fletcher Building, and Sky City.
To gold and the dollar: Gold is currently trading at $954.60 US an ounce and the Aussie dollar is trading at 84.07 US cents.
