The local share market is higher at midday boosted by news of Kraft’s $16.7 billion takeover offer for Cadbury and three local resource deals lifted hopes for a recovery in merger and acquisitions globally.
The S&P/ASX200 index is up 42 points at 4,496 and on the futures market the SPI 200’s up 32 points.
In economic news: NAB’s monthly business survey showed its measure of business confidence rose 8 points to a read of 18 points in August, its best result since 2003. The survey’s overall measure of business conditions added 3 points to 4 index points in August.
To business news at midday: Engineering company Downer EDI Ltd (ASX:DOW) says that its Mining division has secured over $500 million worth of new contracts and work under management. The contracts include a five year deal with Ensham Resources to provide blasting services to its Bowen Basin open-cut coal operation. In New Zealand Downer’s Mining division has signed a five year alliance agreement with Solid Energy New Zealand to operate its Stockton open cut mine in Buller. CEO Geoff Knox says with work-in-hand in excess of $16 billion, the group is well placed to capitalise on the extensive opportunities emanating from its current tender pipeline. Shares in Downer EDI fell 0.65 per cent to $7.70.
Junior iron ore developer FerrAus Ltd (ASX:FRS) says it has reached an agreement with China Railway Materials on strategic iron ore focused cooperation between the two companies. China Railway Materials, through its subsidiary Union Park Company, will acquire a 12 per cent stake in FerrAus by subscribing for 22.9 million shares at 55 cents a share which equates to an investment of $12.6 million. China Railway Materials is the second major Chinese investor following the placement of 9.9 per cent of its shares to China Western Mining in mid-2008. FerrAus shares gained 15.89 per cent to $0.62.
Turning now to market indices: The best performing sector at midday is the Materials index up 149 points to 11,163. Shares in Anvil Mining up 6.84 per cent at $2.81. Shares in Summit Resources and Medusa Mining are also stronger at noon.
The worst performing sector at midday is the Health Care index, down 53 points at 8,712. Shares in Universal Biosensors down 6.35 per cent to $1.18. Shares in Sonic Healthcare and Pharmaxis are also lower.
Looking to New Zealand and the NZSX50 is 7 points higher. Taking a look at the top five stocks by value on the NZSX50: Top of the list is Telecom of New Zealand, stock down 1.08 per cent at $2.75, followed by South Canterbury Finance, ANZ, Fletcher Building and Auckland Airport.
To gold and the dollar: Gold is currently trading at $995.35 US an ounce and the Aussie dollar is trading at 85.4 US cents.
