The local share market is higher at midday, with gains in the miners helping to lift the market on stronger commodities. And the unemployment rate hit 5.8% in October sending the dollar higher.
The S&P/ASX200 index is 35 points higher at 4,792 and on the futures market the SPI 200’s up 35 points.
In economic news: According to figures released by the ABS today, the unemployment rate rose to 5.8% in October from 5.7% in September. However, total employment rose by 24,500 for the month made up mostly of part-time positions.
In company news: Construction and property management solutions company Lend Lease Corporation (ASX:LLC) says it is starting to see signs of improvement in some markets but is yet to see a broad and sustainable recovery. Managing Director Steve McCann told shareholders at the company’s AGM that while the Australian economy remains resilient, the US and UK markets remain difficult and recovery in those markets will be slow. Mr McCann says construction markets in all regions have now slowed, and that the rising Aussie dollar is also expected to impact earnings in the current financial year. The company did not give specific guidance but says it is confident of the group’s outlook over the long term. Shares in Lend Lease fell 1.96 per cent to $9.50.
Centro Retail Group (ASX:CER) says it expects underlying profit for the year to June 30 2010 to be 20 per cent lower than the year before, and cash flow to fall 15 per cent. The company says its results for the September quarter continued to be impacted by economic factors including the significant appreciation in the Australian dollar and movements in interest rates. Centro says every one cent appreciation in the Aussie/US rate results in a negative impact of around $1.3 million per annum in underlying net profit. Shares in Centro Retail Group lost 2.86 per cent to 17 cents.
Turning now to market indices: majority of sectors are in positive territory at midday, however the sector with the biggest gain is the Materials index which is up 177 points to 11,966. Shares in Aditya Birla Minerals advanced 5.64% to $1.405. Shares in Andean Resources and Astron are also higher.
The only sector in the red at midday is the Utilities index, down 19 points at 4,208. Shares in APA Group fell 2.19% to $3.12. Shares in Challenger Infrastructure Fund and AGL Energy are also lower at noon.
Looking to New Zealand and the NZSX50 is 12 points higher. Turning to the top 5 stocks by turnover on the NZSX50: Fletcher Building is top of the list its stock up 0.75 per cent at $8.01, followed by Telecom of New Zealand, Telstra, Kiwi Income Property Trust and Auckland Airport.
To gold and the dollar: Gold is trading at US$1,120.40 an ounce and the Aussie dollar is trading at 93.61 US cents.
