Australian shares are higher at midday, gains in financial stocks helping to offset declines in resource stocks after a drop in commodities and oil prices.
The S&P/ASX200 index is up 32 points at 4,511 and on the futures market the SPI 200’s up 42 points.
In economic news: The ABS reports that approvals to build new homes in July rose 7.7 per cent compared to the month before.
And the Bureau also reports that Australia’s current account deficit for the second quarter was $13.35 billion compared to a deficit of $6.35 billion in the first quarter.
To business news at midday: Infrastructure company Leighton Holdings Ltd (ASX:LEI) subsidiary Al Habtoor Leighton Group has been awarded a $244.5 million water infrastructure project to connect two communities in Qatar. The project includes the development of new and independent water infrastructure facilities in the Duhail and Umm Qarn communities, located between Doha and Al Khor, in the Persian Gulf state. The company says the project began last month and is expected to be completed by 2012. Leighton Holdings shares dropped 0.97 per cent to $36.59.
Engineering and construction company United Group Ltd (ASX:UGL) says it anticipates annual revenue of $162 million from its share in Metro Trains Melbourne. The company says MTM has reached financial close with Victoria’s Department of Transport on the contract to operate and maintain Melbourne’s passenger train franchise. United released a statement today saying that MTM will assume operation and maintenance of the Melbourne passenger train network in November for an initial eight year period. United Group says it also expects to generate revenue from capital works projects associated with the Melbourne rail franchise. United Group shares lost 1.22 per cent to $14.54.
Turning now to market indices: The best performing sector at midday is the Telco Services index up 14 points to 1,147. Shares in IINet up 2.38 per cent at $2.15. Shares in Telstra and Pipe Networks are also stronger at noon.
The worst performing sector at midday is the Real Estate Investment Trust index, down 15 points at 861. Shares in Mirvac Group down 2.03 per cent to $1.45. Shares in Stockland and Westfield Group are also lower.
Looking to New Zealand and the NZSX50 is 32 points lower. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list stock down 3.27 per cent at $2.66, followed by New Zealand Farming Systems Uruguay, Telstra, ANZ and Transpacific Industries Group.
To gold and the dollar: Gold is currently trading at $952.70 US an ounce and the Aussie dollar is trading at 84.41 US cents.
