Australian shares are higher at midday, with energy stocks like Woodside Petroleum lifting the market on a rise in the price of oil. Gains in the top banks and miners also helped to boost the market.
The S&P/ASX200 index is up 26 points at 4,476 and on the futures market the SPI 200’s up 14 point.
To business news at midday: Coal and iron ore miner Aquila Resources Ltd (ASX:AQA) has today announced that China’s largest steel maker Baosteel is to invest $285.6 million to acquire a 15 per cent stake in the company. The investment will be through a placement of 43.95 million shares at $6.50 a share. Aquila says the investment will help the company fast-track the development of Aquila’s key steel raw materials projects including iron ore and manganese. The company says Baosteel will work closely with it to source low cost financing from Chinese financial institutions for most of its major projects. Aquila Resources shares rose 9.77 per cent to $7.19.
Refiner and distributor of petroleum products Caltex Australia Ltd (ASX:CTX) has today announced a 52 per cent rise in first half net profit but says it expects the second half to be challenging. Net profit on a cost replacement basis, which excludes the rise and fall in oil prices, for the six months to June 30 came to $298 million, up from $196 million for the first half of 2008. Revenue dropped 27 per cent to $8.89 billion for the half. Caltex says it expects the second half to be challenging as the favourable key externalities that were seen in the first half are unlikely to be repeated in the second half. The company says a higher Australian dollar and higher crude oil prices will moderate its refiner margin. Caltex Australia shares fell 7.35 per cent to $12.60.
Turning now to market indices: The best performing sector at midday is the Health Care index up 160 points to 8,502. Shares in Sonic Healthcare up 9.37 per cent at $14. Shares in CSL and Ansell are also stronger at noon.
The worst performing sector at midday is the Real Estate Investment Trust index, down 8 points at 864. Shares in Westfield Group down 2.79 per cent to $12.55. Shares in Mirvac Group and Stockland are also lower.
Looking to New Zealand and the NZSX50 is 23 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock up 2.58 per cent to $2.78, followed by Westpac, Air New Zealand, Nuplex Industries and South Canterbury Finance.
To gold and the dollar: Gold is currently trading at $950.60 US an ounce and the Aussie dollar is trading at 84.13 US cents.
