The local share market is higher at midday ahead of the anticipated rate rise by the RBA this afternoon, gains in mining stocks and some of the top banks are helping to support the market.
The S&P/ASX200 index is 13 points higher at 4,553 and on the futures market the SPI 200’s up 7 points.
In company news: Australian weapons developer Metal Storm Ltd (ASX:MST) has requested a trading halt as it awaits payment from a foreign investor. The company has attributed the set-back to a public holiday and delayed bank processes and procedures. Last month Metal Storm announced that it had signed an agreement with Assure Fast Holdings Ltd to issue one billion new fully paid shares and 100 million options for US$17.5 million. Shares in Metal Storm are in a trading halt and last traded at around 3 cents.
Entertainment, hospitality and leisure operator Amalgamated Holdings Ltd (ASX:AHD) has announced a 1 for 5 renounceable entitlement offer at $1.40 a share to raise approximately $107 million. The offer price represents a 31. 3% discount to the company’s closing price yesterday. The proceeds of the offer will be used to strengthen the company’s capital base and provide increased financial flexibility to pursue growth opportunities. Amalgamated Holdings also says it expects to maintain a dividend of 32 cents a share on the expanded share capital of fiscal 2010. Shares in Amalgamated Holdings rose 1.51 per cent to $6.06.
Turning now to market indices: Majority of sectors are in positive territory at midday however the best performing sector at midday is the Utilities index which is up 56 points to 4,218. Shares in Challenger Infrastructure Fund advanced 2.78% to $1.665. Shares in AGL Energy and Duet Group are also higher.
The only sector in the red at midday is the Telecommunications index, down 7 points at 1,109. Shares in Telecom of New Zealand fell 1.24% to $1.995. Shares in Telstra are lower while shares in Amcom Telecommunications are flat at noon.
Looking to New Zealand and the NZSX50 is 15 points lower. Turning to the top 5 stocks by turnover on the NZSX50: ANZ heads the list with stock steady at $28.75, followed by Telstra, Telecom of New Zealand, Fletcher Building and AMP.
To gold and the dollar: Gold is trading at US$1,064.30 an ounce and the Aussie dollar is trading at 90.82 US cents.
