The local share market is higher at midday, a rally on Wall St overnight following some positive economic news on manufacturing activity, fuelling optimism for the global economic recovery.
The S&P/ASX200 index is 40 points higher at 4,917 and on the futures market the SPI 200’s up 32 points.
In economic news: According to the Housing Industry Association, new home sales rose 0.3% in November after dropping 6% in October.
In company news: National Australia Bank Ltd (ASX:NAB) Australia’s third-biggest lender, has sold $1.75 billion dollars of three-year debt of fixed- and floating-rate notes. According to Bloomberg, the $1.25 billion of 2.5 percent notes priced to yield 87.5 basis points more than similar-maturity U.S Treasuries, and the $500 million of floating-rate debt yield 48 basis points more than the three-month London interbank offered rate. NAB shares gained 1.06 per cent to $27.69.
Weapons maker Metal Storm Ltd (ASX:MST) has entered into an agreement with UK based investment fund Global Emerging Markets Global Yield Fund in relation to a $20.2 million dollar equity line of credit. GEM will provide funds for the commercialization of Metal Storms core defence technology products. Metal Storm will receive an initial $800,000 10 days after issuing the first Draw Down Notice, which the company says it intends to issue today. Metal Storm will also issue GEM one option for every five shares issued. The options will have a three-year term and an exercise price of 3.5 cents. Metal Storm shares skyrocketed 30 per cent to 2.6 cents.
Turning now to market indices: The best performing sector at midday is the Real Estate Investment Trust index up 20 points at 912. Shares in Mirvac Group advanced 5.14% to $1.635. Shares in Stockland and CFS Retail Property Trust are also higher.
The worst performing sector at midday is the Health Care index, down 65 to 8,679. Shares in Primary Health Care fell 1.83% to $5.89. While shares in Ansell and ResMed are also lower at noon.
Looking to New Zealand and the NZSX50 is 25 points higher. Taking a look now at the top stocks by turnover: Telecom of New Zealand heads the list, stock up 1.2% at $2.53, followed by; Fletcher Building, Fisher & Paykel Appliances, Mainfreight, and ANZ.
To gold and the dollar: Gold is trading at US$1,121.65 an ounce and the Aussie dollar is trading at 91.27 US cents.
