Following a positive lead from the U.S. the local share market is higher at midday, lifted by gains in mining stocks and oil companies on the back of stronger metals and oil prices.
The S&P/ASX200 index is up 24 points at 4,547 and on the futures market the SPI 200’s up 13 points.
In economic news: The Westpac Bank/Melbourne Institute’s index of consumer sentiment rose 5.2 per cent in September to a read of 119.3.
And the ABS released data showing a 2 per cent fall in housing finance for the month of July, and a 1 per cent drop in retail sales also for July.
To business news at midday: Hearing device maker Cochlear Ltd (ASX:COH) says it has signed an agreement to purchase patent rights, know-how as well as joint development activities with Colorado based company Otologics LLC. The purchase price is US$25 million plus a royalty on future net sales of certain products involving an implantable microphone. Cochlear says US$8.5 million of the purchase price has been paid by June 30 2009. CEO Dr Chris Roberts says the purchase is an exciting step in achieving the company’s long term goal of developing a totally implantable cochlear implant. Cochlear shares fell 1.55 per cent to $61.
Iron ore explorer Gindalbie Metals Ltd (ASX:GBG) has been given the green light from the Western Australian Minister for Environment, Donna Faragher, for development of the Karara Iron Ore project in Western Australia. The company says the decision clears the way for on-site construction and development of the large-scale Karara Project to proceed during the fourth quarter of 2009. Managing director Garret Dixon says the Karara Iron Ore Project is the first major iron ore project to be developed in the Midwest and will open up opportunities for the region to be developed as the next iron ore province. The project still requires Federal Government approval. Gindalbie Metals shares rose 4.57 per cent to $0.915.
Turning now to market indices: The best performing sector at midday is the Energy index up 136 points to 16,157. Shares in Energy Metals up 12.5 per cent at $1.08. Shares in Riversdale Mining and Origin Energy are also stronger at noon.
The worst performing sector at midday is the Utilities index, down 13 points at 4,009. Shares in Duet Group down 2.23 per cent to $1.535. Shares in Challenger Infrastructure Fund and AGL Energy are also lower.
Looking to New Zealand and the NZSX50 is 6 points higher. Taking a look at the top five stocks by value on the NZSX50: Heading the list is Telecom of New Zealand with stock down 0.37 per cent at $2.70 followed by; Fletcher Building, Kiwi Income Property Trust, Air New Zealand and Westpac.
To gold and the dollar: Gold has jumped above the US$1000 mark again and is currently trading at $1002.40 US an ounce and the Aussie dollar is trading at 86.24 US cents.
