Following Wall St’s positive lead overnight, the local share market is higher at midday with positive economic data from the U.S. boosting confidence in an economic recovery. A rise in commodity prices is also helping to lift resource stocks.
Focus today is on the Reserve Bank and its rates announcement this afternoon, there is talk the central bank will raise rates today.
The S&P/ASX200 index is up 37 points at 4,611 and on the futures market the SPI 200’s up 34 points.
In economic news: The ABS released data showing Australia had a trade deficit of $1.524 billion in August.
And the Australian Federal Chamber of Automotive Industries says vehicle sales rose 6.6 per cent in September from the month before.
Making headlines at midday: Provider of professional services to the resources and energy sectors WorleyParsons Ltd (ASX:WOR) has been awarded the contract to manage the prefeasibility study for Flinders Mines Ltd (ASX:FMS) Pilbara Iron Ore Project in Western Australia. WorleyParsons is to begin site investigations during this quarter, with a completed prefeasibility study due for submission by the end of June next year. Flinders says the study will cover the entire ‘mine to ship’ aspects of the Pilbara Project. Shares in WorleyParsons gained 3.04 per cent to $29.16.
Iron ore explorer Centrex Metals Ltd (ASX:CXM) has been given the green light from the South Australian Minister for Urban Planning Development for the company’s Port Lincoln Development. The company says the plan is to refurbish the existing Port Lincoln port infrastructure ant to commence exporting hematite at a rate of 1.6 million tonnes per annum in the fourth quarter of 2010. Chairman David Lindh says the decision marks a critical point in the company’s push to transition from explorer to miner. Shares in Centrex Metals jumped 17.12 per cent to $0.65 on the news.
Turning now to market indices: Majority of sectors are in positive territory at midday, however the sector with the biggest gain is the Real Estate Investment Trust index which gained 15 points to 929. Shares in Stockland advanced 2.33 per cent to $3.96. Shares in Westfield Group and Mirvac Group are also higher at midday.
One of the only sectors in the red at midday is the Consumer Discretionary index, down half a point at 1,585. Shares in David Jones lost 4.45 per cent to $5.58. Shares in Harvey Norman and Flight Centre are also lower.
Looking to New Zealand and the NZSX50 is 15 points higher. Taking a look at the top five stocks by turnover on the NZSX50: Topping the list is Telecom of New Zealand, stock down 0.38 per cent at $2.60. Fletcher Building follows the telco, then ANZ, Auckland Airport and South Canterbury Finance.
To gold and the dollar: Gold is trading at $1016.35 US an ounce and the Aussie dollar is trading at 87.69 US cents.
