The local share market is higher at midday with all sectors of the market in positive territory led up by gains in resource companies on stronger commodities. The major banks also helped to lift the market, ANZ rising after announcing a convertible preference share offer to raise $750 million.
The S&P/ASX200 index is 61 points higher at 4,736 and on the futures market the SPI 200’s up 63 points.
In economic news: The NAB monthly business survey of over 400 firms showed its measure of business activity rose 9 points to 12 points in October. The measure of business confidence rose 2 points to 16.
In company news: Insurance Australia Group Ltd (ASX:IAG) has reaffirmed its full year outlook after a pleasing first quarter. CEO Michael Wilkins told shareholders at the company’s annual general meeting that if operating conditions experienced in the first quarter continue IAG expects to deliver an insurance margin towards the upper end of its 9 - 11 per cent guidance for fiscal 2010. Mr Wilkins says in the first quarter the company saw the underlying performance of the business continue to improve with IAG also having the added benefit of narrowing credit spreads. IAG also announced that Brian Schwartz has been appointed as deputy chairman. Shares in IAG rose 0.52 per cent to $3.89.
Diversified media company Fairfax Media Ltd (ASX:FXJ) says it expects modest earnings growth in the second half of 2010 as business conditions improve. The company says for the first four months of this half, underlying earnings before interest, tax, depreciation and amortization from continuing businesses has fallen 15 per cent compared to the same period last year. CEO Brian McCarthy says that while advertising revenues remain below the same period last year the company has seen improvement in recent months. Mr McCarthy says there are signs of increased confidence among its advertisers, which has been pleasing. Fairfax Media shares fell 1.52 per cent to $1.625.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Materials index which is up 222 points to 11,678. Shares in Sino Gold Mining advanced 6.39% to $7.66. Shares in Aditya Birla Minerals and Gunns are also higher.
The sector with the smallest gain at midday is the Utilities index, up 8 points at 4,191. Shares in EnviroMission fell 16.67% to $0.10. Shares in Spark Infrastructure Group and AGL Energy are also lower at noon.
Looking to New Zealand and the NZSX50 is 1 point lower. Turning to the top 5 stocks by turnover on the NZSX50: Heading the list is Auckland Airport, shares down 2.59 per cent at $1.88, followed by Fletcher Building, Telecom of New Zealand, Sky City and Infratil New Zealand.
To gold and the dollar: Gold is trading at US$1,104.70 an ounce and the Aussie dollar is trading at 93.05 US cents.
