The Australian share market is higher at midday, an increase in interest rates yesterday boosting confidence that the global economy is on its way to recovery. Higher commodities lifted resource stocks like top miners BHP and Rio Tinto.
The S&P/ASX200 index is up 67 points at 4,659 and on the futures market the SPI 200’s up 64 points.
In economic news: The ABS has released data showing a 0.6 per cent fall in Australian housing finance for August.
And the Australian Industry Group/Housing Industry Association’s Performance of Construction Index added 8.4 points to a read of 50.8 in September, pushing the result above the 50 mark separating expansion and contraction in the sector.
Making headlines at midday: Global miner BHP Billiton Ltd (ASX:BHP) has experienced a mechanical failure at its Olympic Dam mine in South Australia which has consequently shut-down an automated ore haulage system. According to a report in the Australian industry sources say the accident could disrupt the mine's operations for several months. BHP is expected to make an announcement regarding the incident sometime today. BHP shares rose 2.18 per cent to $37.45.
Processor of coking coal to produce metallurgical coke and other by-products in China Rocklands Richfield Ltd (ASX:RCI) says it has received a competing takeover offer from Essar Mineral Resources Ltd, a member of the Essar Group of India. On September 22 the company received a takeover offer from Jindal Steel and Power Ltd to acquire all the shares in the company for 42 cents cash a share. Essar is offering 50 cents a share. Rocklands says its directors will convene a board meeting to consider the merits of both the Jindal Proposal and the Essar Proposal to determine which one is the superior offer. Rocklands Richfield shares jumped 17.14 per cent to $0.41.
Turning now to market indices: The best performing sector at midday is the Materials index which gained 306 points to 11,262. Shares in Independence Group advanced 7.96 per cent to $4.61. Shares in Sino Gold Mining and Newcrest Mining are also higher at midday.
One of the only sectors in the red at midday is the Health Care index, down 4 points at 8,550. Shares in Unilife Medical Solutions lost 14.49 per cent to $1.18. Shares in Cochlear and Healthscope are also lower.
Looking to New Zealand and the NZSX50 is 8 points lower. Taking a look at the top five stocks by turnover on the NZSX50: Fletcher Building tops the list, stock down 1.19 per cent at $8.30, followed by Telecom of New Zealand, Contact Energy, Auckland Airport and South Canterbury Finance.
To gold and the dollar: Gold is trading at $1039.95 US an ounce and the Aussie dollar is trading at 88.88 US cents.
