The local share market is higher at midday following news of Abu Dhabi’s $10 billion lifeline to Dubai which lifted international markets overnight, and Exxon Mobil’s proposed $41 billion takeover of XTO Energy giving local energy stocks a boost.
In the RBA’s minutes from its December 1 board meeting, the central bank says its decision to raise rates this month was due in part to expected strength in demand for housing and infrastructure in coming years amid the boom in resource investment.
The RBA board also indicated that interest rates will continue to rise as the economy continues to improve.
The S&P/ASX200 index is 24 points higher at 4,679 and on the futures market the SPI 200’s up 8 points.
In economic news: The ABS reports that dwelling unit starts rose 9.4% in the third quarter from the previous quarter.
In company news: Lend Lease Group (ASX:LLC) says it has commenced early works activities on the new Melbourne Wholesale Fruit, Vegetables and Flower Market. Bovis Lend Lease was appointed preferred tenderer for the design and construction of the new market on October 5, 2009. Bovis is currently contracted to deliver early works on the project site, prior to the signing of the final contract in the first quarter of 2010 for the design and construction of the new facility. The $300 million development is scheduled to open in 2012. Shares in Lend Lease fell 0.95 per cent to $9.34.
Australian mineral investment company Cape Lambert Resources Ltd (ASX:CFE) has lost close to $32 million due to the delay of the Q Copper IPO. The closing date for the IPO has now been extended to February 3 and the minimum subscription revised down to $164.5 million at an issue price of a $1 each from $203 million. Q Copper was believed to have had commitments for the full $203 million before a number of investors failed to settle their obligations. Cape Lambert, who is divesting its Lady Annie mine into Q Copper, will now receive a total consideration of $137.5 million cash and retain up to 15% of Q Copper. Cape Lambert shares dropped 9.43 per cent to $0.48.
Turning now to market indices: All sectors are in the black at midday, however the sector with the biggest gain is the Energy index, up 173 points at 15,391. Shares in Paladin Energy advanced 3.68% to $3.94. Shares in Molopo Australia and Riversdale Mining are also higher.
The sector with the smallest gain at midday is the Telco Services index, up 4 points to 1,193. Shares in BigAir Group fell 4.76% to $0.10. Shares in Hutchison Telecommunications are lower while shares in Sirius Corp are flat at noon.
Looking to New Zealand and the NZSX50 is 12 points higher. Taking a look now at the top 5 stocks by turnover: Telecom of New Zealand heads the list stock up 2.13% at $2.40 followed by; Sky Network Television, Fletcher Building, Goodman Property Trust and Kiwi Income Property Trust.
To gold and the dollar: Gold is trading at US$1,127.05 an ounce and the Aussie dollar is trading at 91.44 US cents.
