Aussie shares are stronger at midday, positive economic data from the U.S. boosting hopes for a recovery in the global economy. A stronger oil price is also helping to lift energy stocks like Woodside Petroleum.
The S&P/ASX200 index is up 93 points at 4,634 and on the futures market the SPI 200’s up 88 points.
In economic news: The Westpac/Melbourne Institute leading index of economic activity improved to a read of minus 1.8 per cent in July from a read of minus 3.3 per cent in June and minus 7 per cent in May.
Westpac chief economist Bill Evans says the bank believes that economic growth in the second half of this year will be tepid.
Making headlines at midday: Oil and gas producer Santos Ltd (ASX:STO) says it expects to make a final investment decision for the Papua New Guinea LNG project this year. According to a report from the Dow Jones Newswires CEO David Knox says all being well, the company will approve the project this year. The comments follow on from news that Chevron, ExxonMobil and Royal Dutch Shell have agreed to proceed with the multi-billion dollar Gorgan Gas LNG Project in Western Australia. Both these projects, the Gorgan Gas LNG Project and the Papua New Guinea LNG Project have customers already signed for when production commences. Santos shares rose 2.03 per cent to $15.56.
Developer and operator of uranium projects in Africa and Australia Paladin Energy Ltd (ASX:PDN) says it has raised $429 million via a private placement of shares to institutional investors. The company says the private placement of 93.45 million shares was conducted at an offer price of $4.60 a share. Paladin Energy says the proceeds will be used for future growth opportunities. Paladin Energy shares gained 0.45 per cent to $4.50.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Telco Services index up 36 points to 1,125. Shares in Telstra up 3.86 per cent at $3.23. Shares in IINet and Singapore Telecommunications are also higher at noon.
The sector with the smallest gain at midday is the Real Estate Investment Trust index, up 6 points at 915. Shares in Goodman Group down 3.31 per cent to $0.585. Shares in Macquarie Office Trust and Valad Property Group are flat.
Looking to New Zealand and the NZSX50 is 17 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand tops the list stock steady at $2.68, followed by Telstra, Fletcher Building, Sky City and Auckland Airport.
To gold and the dollar: Gold is trading at $1008.40 US an ounce and the Aussie dollar is trading at 86.45 US cents.
