Aussie shares are higher at midday, boosted by stronger oil and metals prices and news that agricultural chemicals supplier Nufarm has rejected a revised offer from China’s Sinochem and instead agreed to a deal with Japan’s Sumitomo Chemical.
The S&P/ASX200 index is 55 points higher at 4,845 and on the futures market the SPI 200’s up 25 points.
In company news: Western Plains Resources Ltd (ASX:WPG) has withdrawn from the Commonwealth Hill farm-in and joint venture. The Commonwealth Hill tenements lie in the Woomera Prohibited Area and parts of them lie within a zone known as the Corridor of Uncertainty. The company says initiatives taken by the Department of Defence after the farm-in agreement was signed in November 2008 raise security of tenure issues for all mining companies in many parts of the Woomera Prohibited Area. Western Plains Resources says until the Commonwealth Government releases a clear and unambiguous policy as to the conditions under which orebodies discovered in the area can be mined it is the company’s view that further exploration expenditure at Commonwealth Hill would be imprudent. Shares in Western Plains Resources gained 5.17per cent to $0.305.
Coal explorer and producer Rocklands Richfield Ltd (ASX:RCI) says China’s Meijin Energy Group has increased its offer for the company to 56 cents a share. Meijin’s original offer for Rocklands Richfield was 52 cents a share, trumping an offer made by India’s Jindal Steel & Power Ltd to acquire 100% of the company at 42 cents a share. Jindal revised its offer to match Meijin’s original 52 cents a share, Jindal has until December 30 to revise its proposal in light of Meijin's increased offer. Shares in Rocklands Richfield soared 33.33 per cent to $0.44.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Consumer Staples index up 133 points at 7,771. Shares in Woolworths advanced 1.06% to $27.71. Shares in Coca-Cola Amatil and Goodman Fielder are also higher.
The sector with the smallest gain at midday is the Health Care index, up 26 to 8,767. Shares in Pharmaxis fell 4.84% to $2.75. While shares in ResMed and Ramsay Health Care are also lower at noon.
Looking to New Zealand and the NZSX50 is 15 points higher. Taking a look now at the top 5 stocks by turnover: Telecom of New Zealand tops the list, stock up 2.45% at $2.51 followed by Fletcher Building, Kiwi Income Property Trust, Restaurant Brands NZ and PGG Wrightson.
To gold and the dollar: Gold is trading at US$1,105.75 an ounce and the Aussie dollar is trading at 88.66 US cents.
