The Australian share market is higher at midday with gains in resource stocks outweighing falls in the banks as investors continue to sell financial stocks believing them to have risen too far.
The S&P/ASX200 index is 34 points higher at 4,720 and on the futures market the SPI 200’s up 33 points.
In economic news: Figures released by the ABS today show that sales of new motor vehicles rose 3.7% in October from the month before. This follows a 3.1% rise in September.
In company news: Australia and New Zealand Banking Group Ltd (ASX:ANZ) has completed the acquisition of the Royal Bank of Scotland’s business in the Philippines. The Philippines business is the first of six markets to transition into the bank’s ownership following the acquisition of selected RBS businesses in Asia, announced on August 4. ANZ is to acquire RBS retail, wealth and commercial businesses in Taiwan, Singapore, Indonesia and Hong Kong and the institutional businesses in Taiwan, the Philippines and Vietnam for around US$550 million. ANZ CEO of Asia Pacific, Europe and America Alex Thursby says the RBS acquisition is an important step in the banks super regional strategy and the completion in the Philippines shows that its plans to integrate the business are on track. Shares in ANZ rose 0.87% to $21.94.
Australia’s largest listed health information technology company iSOFT Group Ltd (ASX:ISF) says it has won new business totalling about $10 million in October. The company says it has agreed on a 2 million pound deal for additional maintenance and licenses with NHS Supply Chain for a warehousing solution to manage the ordering and supply of non-pharmaceutical goods to 600 National Health Services trusts and healthcare organizations in England. iSOFT has also won a second 2 million pound deal with North East Patches Shared System Group, a five year contract for a financial performance management solution for planning, budgeting, forecasting and reporting. Shares in iSOFT Group gained 1.3% to $0.78.
Turning now to market indices: Majority of sectors are in positive territory at midday, however the best performing sector is the Materials sector index is up 163 points to 12,218. Shares in James Hardie Industries N.V. advanced 7.7% to $7.97. Shares in Avoca Resources and Aquarius Platinum are also higher.
The worst performing sector at midday is the Energy index, down 26 points to 15,806. Shares in New Hope fell 1.6% to $4.31. Shares in Paladin Energy and Woodside Petroleum are also lower at noon.
Looking to New Zealand and the NZSX50 is 2 points higher. Looking at the top 5 stocks by turnover on the NZSX50: Topping the list is Telecom of New Zealand with stock down 3.52% at $2.47 followed by; Fletcher Building, Auckland Airport, Fisher & Paykel Appliances and Fisher & Paykel Healthcare.
To gold and the dollar: Gold is trading at US$1,160.55 an ounce and the Aussie dollar is trading at 91.86 US cents.
