The local share market has risen at midday, breaking a four day losing streak following a rally on Wall St overnight after the US economy returned to growth in the third quarter. Gains in local resource stocks on higher oil and metals prices, is helping to support the market.
The S&P/ASX200 index is 59 points higher at 4,634 and on the futures market the SPI 200’s up 70 points.
Making headlines at midday: Oil and gas explorer Australian Worldwide Exploration Ltd (ASX:AWE) has lowered its production guidance for the year to June 30 2010 from 7 million barrels of oil equivalent to 6.5 million barrels of oil equivalent due to adverse weather at Tui and the planned extended shutdown at BassGas. The company also reported a 25 per cent rise in revenue of $109 million for the September quarter. AWE also reported that oil and gas production of 1.86 million barrels of oil equivalent, down slightly on the previous quarter. Shares in Australian Worldwide Exploration gained 1.16 per cent to $2.62.
The float of retail giant Myer has settled at a final price of $4.10 a share at the bottom end of its prospectus range due to falls in equity prices on Wall St and the Australian market. The company conducted an institutional book-build yesterday selling 500 million shares, giving Myer a market capitalization of $2.4 billion and an enterprise value of $2.8 billion for when it lists on the ASX next Monday. According to a report in the Sydney Morning Herald the price of $4.10 a share values the retailer at 15.1 times its forecast 2009/2010 earnings which is a big discount to the company’s rival, high-end retailer David Jones Ltd (ASX:DJS) who currently sits at 17.8 times this year’s earnings. News also that TPG and Blum Capital, part owners in Myers, have sold their investments in the company. David Jones shares fell 1.09 per cent to $5.43.
Turning now to market indices: The best performing sector at midday is the Real Estate Investment Trust index which is up 33 points to 874. Shares in Stockland advanced 5.37% to $3.73. Shares in Mirvac Group and Westfield Group are also higher.
The worst performing sector at midday is the Health Care index, down 102 points at 8,365. Shares in IDT Australia fell 8.75% to $1.46. Shares in Healthscope and Cochlear are also lower.
Looking to New Zealand and the NZSX50 is 18 points higher. Turning to the top 5 stocks by turnover on the NZSX50: ANZ heads the list, stock up 0.87 per cent at $29 followed by Telstra, Telecom of New Zealand, AMP and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,046.35 an ounce and the Aussie dollar is trading at 91.47 US cents.
