Aussie shares are flat at midday as investors await the Reserve Bank’s decision on interest rates this afternoon. Expectations are for a rise of 25 basis points as the health of the economy appears to be on the mend.
The S&P/ASX200 index is 7points higher at 4,708 and on the futures market the SPI 200’s up 22 points.
In economic news: The ABS reports that building approvals fell 0.6% in October from the month before.
And the Australian Industry Group/PriceWaterhouseCoopers Performance of Manufacturing Index dropped 0.5 points to a read of 51.2 in November. The result still remains above the 50 mark separating expansion from contraction.
In company news: Top Australian airline Qantas Airways Ltd (ASX:QAN) says passenger numbers increased 6.7% in October compared to October last year. Revenue per kilometer rose 3.2% while available seat kilometers dropped 1.1% resulting in revenue seat factor of 83.3%, 3.4% higher than last October. For the financial year to date the airline says passenger numbers are up 6.2% from the previous year. Qantas says it has hedged 85% of its expected fuel requirement in 2009/2010 at a worst-case crude oil price of US$88 per barrel including optional premium. Qantas shares rose 2.69 per cent to $2.67.
Australian Agricultural Company Ltd (ASX:AAC) says it has successfully refinanced its 2010 and 2011 debt maturity obligations. The company says the new facilities which total $330 million, comprise of two lines; a $270 million three year term loan and a $60 million revolving facility, subject to annual review. The new facilities are being provided through a competitively priced ‘club’ arrangement comprising ANZ, CBA and NAB and replace two tranches of debt for $58 million and $250 million scheduled to mature in January 2010 and January 2011 respectively. Shares in Australian Agricultural Company fell 1.43 per cent to $1.38.
Turning now to market indices: Majority of sectors are in the black at midday, however the sector with the biggest gain is the Telco Services index up 18 points to 1,182. Shares in Eftel advanced 2.86% to 3.6 cents. Shares in Amcom Telecom and Telstra are also higher.
The only sector in the red at midday is the Real Estate Investment Trust index, down 8 points to 872. Shares in Mirvac Group fell 2.54% to $1.535. Shares in CFS Retail Property Trust and Bunnings Warehouse are also lower at noon.
Looking to New Zealand and the NZSX50 is 17 points higher. Taking a look now at the top 5 stocks by turnover: and topping the list is Telecom of New Zealand with stock up 0.41% at $2.47. Following the Telco is ANZ, Fletcher Building, Guinness Peat and Infratil.
To gold and the dollar: Gold is trading at US$1,180.25 an ounce and the Aussie dollar is trading at 91.6 US cents.
