The local share market is stronger at midday with resource companies like top miner BHP and major banks like the Commonwealth Bank leading the gains after merger and acquisition activity in the U.S. boosted investors confidence that such activity will start picking up in Australia too.
The S&P/ASX200 index is up 88 points at 4,765 and on the futures market the SPI 200’s up 87 points.
Making headlines at midday: Property investor Macquarie CountryWide Trust (ASX:MCW) has completed the issue of its $265 million commercial mortgage backed securities program. The company says it has also repaid in full the 2006 Australian dollar commercial mortgage backed securities using proceeds from the new issue, cash from recent asset sales and funds drawn from a head trust debt facility. The securities have a three year term with an option to repay after two years. CEO Steven Sewell says the company is pleased to have completed the first Australian commercial mortgage backed securities issue in the market since October 2007. Macquarie CountryWide shares gained 0.76 per cent to $0.66.
Diversified property group Dexus Property Group (ASX:DXS) says it has opened up a new source of capital after pricing its inaugural US$300 million debt issue in the United States bond market. Dexus says the notes were priced at 99.582 per cent of the principle amount. The company says the notes were issued with a coupon of 7.125 per cent for a tenor of five years. Dexus says the proceeds will be used to pay down the group’s existing borrowings. Dexus says the earnings impact of this debt issue is in line with expectations. Dexus Property shares rose 3.12 per cent to $0.825.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Financials excluding Real Estate Investment Trust index which is up 133 points to 5,774. Shares in Bank of Queensland advanced 5.54 per cent to $11.62. Shares in AMP and Lend Lease are also higher at noon.
The sector at midday with the smallest gain is the Telecommunications index, up 5 points at 1,129. Shares in Engin lost 4.76 per cent to $0.02. Shares in Hutchison Telecommunications and Telecom of New Zealand are also lower.
Looking to New Zealand and the NZSX50 is up 22 points. Taking a look at the top five stocks by turnover on the NZSX50: At the top is Telecom of New Zealand, stock down 1.51 per cent at $2.61. Followed by Fisher & Paykel Healthcare, Fletcher Building, South Canterbury Finance and Infratil New Zealand.
To gold and the dollar: Gold is trading at $991.45 US an ounce and the Aussie dollar is trading at 87.35 US cents.
