The local share market is higher at midday lifted by gains in the miners despite lower base metals prices, and strength in the financial sector on merger and acquisition activity, with AXA Asia Pacific this morning knocking back an $11.2 billion break-up plan that would see its Australian assets go to AMP.
The S&P/ASX200 index is 76 points higher at 4,670 and on the futures market the SPI 200’s up 81 points.
In economic news: The ABS says housing finance rose 5.1% in September from the month before.
And the ANZ job advertisements survey showed a drop of 1.7% in total job ads in October, after rising 4.4% in September.
In company news: Seven Network Ltd (ASX:SEV) chairman Kerry Stokes says the media business is in good shape despite a tough 12 months for the economy. Mr Stokes told shareholders that the company has investments in some of Australia’s best known and best performing media brands, a strong balance sheet and cash reserves. Mr Stokes says Seven has more than $1 billion in cash and more than $400 million in its listed portfolio, excluding its major investments in West Australian Newspapers and Consolidated Media. He says the company is looking forward to a strengthening in the Australian economy, and as a result advertising demand, following a much canvassed decline over the past 12 months. Shares in the Seven Network gained 1.26 per cent to $6.43.
Television broadcaster Ten Network Holdings Ltd (ASX:TEN) says that media remains an exciting, relevant and ever-developing sector and that the company is in a strong position for the year ahead. In the company’s annual report Chairman Nick Falloon says that the work done during the year to strengthen its businesses and establish momentum across the company means Ten Holdings is in a much stronger position for 2010 and beyond. Mr Falloon also says the company’s position improved after major shareholder Canwest sold its 50.06 per cent holding in the company, saying that Ten now has a broad mix of institutional and retail shareholders, with no controlling shareholder. Shares in Ten Network Holdings rose 0.66 per cent to $1.525.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Financials excluding Real Estate Investment Trust index which is up 122 points to 5,621. Shares in AXA Asia Pacific advanced 30.47% to $5.61. Shares in IOOF Holdings and Challenger Financial Services Group are also higher.
The sector with the smallest gain at midday is the Real Estate Investment Trust index, up 3 points at 863. Shares in Goodman Group fell 1.65% to $0.595. Shares in Macquarie Office Trust and Bunnings Warehouse are also lower at noon.
Looking to New Zealand and the NZSX50 is 2 points higher. Turning to the top 5 stocks by turnover on the NZSX50: Telecom of New Zealand tops the list stock down 0.79 per cent at $2.50, followed by AMP, Fletcher Building, Fisher & Paykel Healthcare and Westpac.
To gold and the dollar: Gold is trading at US$1,100.90 an ounce and the Aussie dollar is trading at 92.67 US cents.
