The local share market is stronger at midday, lifted by gains in mining stocks and the industrials and following Wall St’s rally overnight on stronger than expected jobs data.
And the central bank says it is likely that it will have to continue to raise interest rates gradually as its forecasts for economic growth improve substantially for next year.
The S&P/ASX200 index is 52 points higher at 4,560 and on the futures market the SPI 200’s up 49 points.
In economic news: The Australian Industry Group/Housing Industry Association Performance of Construction Index rose 0.1 points to a read of 50.9 in October.
In company news: Geodynamics Ltd (ASX:GDY) says the Federal Government has awarded the company $90 million in funding for the Cooper Basin 25 mega watt Geothermal Demonstration Project. The funds were issued as part of the Federal Governments $235 million Renewable Energy Demonstration Program awarded to 4 renewable energy demonstration projects across a range of emerging renewable technologies. Minister for Resources and Energy Martin Ferguson says the projects will diversify Australia’s energy supply and will help deliver the Government’s expanded Renewable Energy Target of 20% by 2020. Shares in Geodynamics gained 10.24 per cent to $0.915.
New Zealand Telco Telecom Corporation of New Zealand Ltd (ASX:TEL) has announced a 9.5% rise in net profit to NZ$162 million, for the September 2009 quarter, compared to NZ$162 million recorded for the same period the year before. Earnings before interest, tax, depreciation and amortization fell 4.1% to NZ$447 million for the quarter, with revenue down 6.5% to NZ$1.356 billion, compared to the corresponding quarter last fiscal year. Looking ahead the Telco has upgraded its outlook for net profit for the year from between NZ$370 million to NZ$410 million to now between NZ$400 million to NZ$440 million. Telecom of New Zealand also maintains its guidance for earnings before interest, tax, depreciation and amortization in fiscal 2010 to come in somewhere between a fall of 1% to a 2% rise on fiscal 2009. Shares in Telecom of New Zealand rose 0.76 per cent to $1.985.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Industrials index which is up 85 points to 3,794. Shares in Transurban Group advanced 5.73% to $5.54. Shares in Leighton Holdings and Macquarie Infrastructure Group are also higher.
The sector with the smallest gain at midday is the Health Care index, up 12 points at 8,268. Shares in Australian Pharmaceutical Industries fell 5.11% to $0.65. Shares in Starpharma Holdings and Aevum are also lower at noon.
Looking to New Zealand and the NZSX50 is 18 points higher. Turning to the top 5 stocks by turnover on the NZSX50: Telecom of New Zealand is top of the list with stock up 1.21 per cent higher at $2.51, followed by Fletcher Building, Westpac, ANZ, and Guinness Peat.
To gold and the dollar: Gold is trading at US$1,089.95 an ounce and the Aussie dollar is trading at 91.15 US cents.
