The local share market is higher at midday, shrugging off a flat lead from Wall St overnight with gains in mining stocks and banks lifting the market.
The S&P/ASX200 index is 28 points higher at 4,762 and on the futures market the SPI 200’s up 40 points.
In economic news: The Westpac/Melbourne Institute’s index of consumer sentiment dropped 2.5% to a read of 118.3 in November. The result however was still 38.3% higher than a year ago.
In company news: Professional engineering design and project management company Ausenco Ltd (ASX:AAX) has downgraded guidance for sales revenue in 2009 to between $435 million and $465 million, and underlying net profit after tax of between $26 million and $30 million. CEO Zimi Meka says this guidance follows a review of significant contracts currently underway and those expected to be awarded during the remainder of the year. However despite this guidance, Mr Meka says Ausenco is well positioned for future growth and strong earnings potential. Ausenco shares lost 1.83 per cent to $4.30.
Commonwealth Property Office Fund (ASX:CPA) says it remains confident of meeting its distribution guidance of 5.3 cents a unit for the 12 months to June 30 2010. Fund manager Charles Moore says that while the Australian office space markets are likely to remain challenging for the next 12 months, recent economic indicators show the resilience in the Australian economy which should particularly benefit Sydney, the company’s largest geographic holding. Head of property Darren Steinberg says the fund remains well positioned with a strong balance sheet to capitalise on opportunities that may arise in the current market. Shares in the Commonwealth Property Office Fund gained 1.6 per cent to $0.955.
Turning now to market indices: majority of sectors are in positive territory at midday, however the sector with the biggest gain is the Real Estate Investment Trust index which is up 27 points to 896. Shares in Mirvac Group advanced 5.44% to $1.55. Shares in Stockland and Westfield Group are also higher.
The only sector in the red at midday is the Industrials index, down 3 points at 3,912. Shares in Cabcharge Australia fell 3.21% to $6.34. Shares in Transfield Services and Ausenco are also lower at noon.
Looking to New Zealand and the NZSX50 is 3 points lower. Turning to the top 5 stocks by turnover on the NZSX50: Fletcher Building is top of the list its stock down 1.24 per cent at $7.94, followed by Telecom of New Zealand, Sky City, Auckland Airport and Sky Network Television.
To gold and the dollar: Gold is trading at US$1,107 an ounce and the Aussie dollar is trading at 93.1 US cents.
