The local share market is higher at midday following gains on Wall St at the end of last week after a report showed that the U.S. economy lost fewer jobs than expected. G20 leaders over the weekend agreed to maintain economic stimulus measures to support the global recovery, also boosting the market today.
The S&P/ASX200 index is up 10 points at 4,446 and on the futures market the SPI 200’s up 22 points.
In economic news: A survey by ANZ shows that total job ads rose 4.1 per cent in August from the month before, following a 1.7 per cent fall in July.
And the Australian Industry Group/Housing Industry Association performance of construction rose 2.9 points to a read of 42.4 index points in August. A read under 50 indicates contraction in the sector.
To business news at midday: Drug maker Sigma Pharmaceuticals Ltd (ASX:SIP) is to acquire an established pharmaceutical brand portfolio and manufacturing facility from Bristol-Myers Squibb for $60 million in cash. Sigma says it plans to raise $297 million in a one for three rights offer at an offer price of $1.02 a share to fund the acquisition. Sigma will acquire the right to manufacture, market and distribute 15 ethical pharmaceutical and health care brands in Australia and New Zealand, the right to export a majority of the acquired brands to New Zealand, and a modern pharmaceutical manufacturing facility in Noble Park, Victoria. Sigma pharmaceutical shares are in a trading halt and last traded at $1.22.
Global miners BHP Billiton Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO) are reportedly considering a $1 billion merger of their Canadian diamond operations in addition to their massive iron ore joint venture in Western Australia. According to The Australian BHP has sent employees to Canada to investigate the potential of merging the two companies diamond mines. The mines sit alongside each other northeast of Yellowknife, the capital of Canada’s Northwest Territories. BHP shares fell 0.14 per cent to $36.57 and shares in Rio Tinto gained 1.03 per cent to $55.82.
Turning now to market indices: The best performing sector at midday is the Health Care index up 167 points to 8,780. Shares in Vision Group Holdings up 10.7 per cent at $1.19. Shares in CSL and Probiotec are also stronger at noon.
The worst performing sector at midday is the Consumer Staples index, down 55 points at 7,146. Shares in Coca-Cola Amatil down 2.67 per cent to $9.84. Shares in Foster’s Group and Woolworths are also lower.
Looking to New Zealand and the NZSX50 is 20 points higher. Taking a look at the top five stocks by value on the NZSX50: Fletcher Building heads the list, stock up 0.76 per cent at $7.92, followed by Telecom of New Zealand, Telstra, Westpac and Vector.
To gold and the dollar: Gold is currently trading at $992.70 US an ounce and the Aussie dollar is trading at 85.26 US cents.
