The local share market is higher at midday lifted by gains in resource companies on stronger commodities prices and strength from the retailers after Harvey Norman forecast a 40% or more increase in profit for the half year.
The S&P/ASX200 index is 12 points higher at 4,729 and on the futures market the SPI 200’s up 12 points.
In company news: Mining giant BHP Billiton Ltd (ASX:BHP) says it has accepted the resignation of Dr David Morgan as Director. Dr Morgan has accepted an offer to be Managing Director of US investment firm JC Flowers for Europe and Asia Pacific, based in London. Given the time demands of this position, Dr Morgan believes that is necessary to relinquish all of his existing professional positions including his directorship of BHP Billiton. Chairman Don Argus says he is disappointed at Dr Morgan’s decision. Shares in BHP rose 0.1 per cent to $40.50.
Banking and insurance company Suncorp-Metway Ltd (ASX:SUN) CEO Patrick Snowball says the group’s underlying business is sound. Mr Snowball told investors at a briefing that the credit quality of the bank’s core portfolio remains strong and that the company is starting to see a decrease in bad and doubtful debts. Suncorp’s impairment loss for the September quarter came to $9 million compared to $18 million in the June quarter. Mr Snowball says the bank’s funding position is secure and that its franchise has held up well. Shares in Suncorp-Metway gained 2.18 per cent to $8.91.
Turning now to market indices: The best performing sector at midday is the Energy sector index is up 135 points to 15,972. Shares in Molopo Australia advanced 4.18% to $1.62. Shares in Woodside Petroleum and Centennial Coal are also higher.
The worst performing sector at midday is the Telco Services index, down 6 points to 1,135. Shares in Eftel fell 6.25% to $0.03. Shares in Reverse Corp and Telstra are also lower at noon.
Looking to New Zealand and the NZSX50 is 25 points higher. Looking at the top 5 stocks by turnover on the NZSX50: Telecom of New Zealand tops the list, stock up 1.21% at $2.51. Following the Telco is Pyne Gould Corp, Telstra, South Canterbury Finance and Ryman Healthcare.
To gold and the dollar: Gold is trading at US$1,160.65 an ounce and the Aussie dollar is trading at 92.16 US cents.
