Shrugging off a flat lead from the U.S. overnight the Australian share market is higher at midday, a jump in employment for September providing a boost and causing the dollar to rally above 90 US cents. Alcoa’s surprise third quarter profit also boosting resource stocks.
The S&P/ASX200 index is up 56 points at 4,751 and on the futures market the SPI 200’s up 47 points.
In economic news: The ABS has released data showing an increase in employment of 40,600 in September, taking the unemployment rate down to 5.7 per cent.
Making headlines at midday: Westpac Banking Corporation (ASX:WBC) has lost a case against the New Zealand tax office in the New Zealand High Court. The bank will now have to pay NZ$961 million in taxes and interest to the Inland Revenue Department. The New Zealand Commissioner of Inland Revenue disputed the tax on nine transactions that took place between 1998 and 2002. Westpac shares rose 1.65 per cent to $25.93.
Manufacturer and distributor of pharmaceutical products Sigma Pharmaceuticals Ltd (ASX:SIP) says its retail entitlement offer fell short of expectations. The company says it received applications for 50.8 million shares under the offer, representing about 32 per cent of the total number offered, with a shortfall of 109.6 million new shares not taken up. On September 7 Sigma announced an equity raising of $297 million. The company raised $134 million from institutional investors at $1.02 a share last month. Sigma Pharmaceutical last traded at $1.03.
Turning now to market indices: The best performing sector at midday is the Consumer Discretionary index which gained 24 points to 1,603. Shares in ARB Corp advanced 8.7 per cent to $5. Shares in Fairfax Media and APN News & Media are also higher at midday.
One of the only sectors in the red at midday is the Telco Services index, down 6 points at 1,123. Shares in Singapore Telecommunications lost 2.01 per cent to $2.44. Shares in Reverse Corp and Telstra are also lower.
Looking to New Zealand and the NZSX50 is 8 points higher. Taking a look at the top five stocks by turnover on the NZSX50: Telstra heads the list, stock down 2.23 per cent at $3.94, followed by Telecom of New Zealand, Fletcher Building, Auckland Airport and South Canterbury Finance.
To gold and the dollar: Gold is trading at $1048.10 US an ounce and the Aussie dollar is trading at 90.02 US cents.
