Following a flat lead from Wall St overnight, the local share market is steady at midday gains in resource stocks on stronger oil and metals prices and retailers on stronger retail sales in November countered by weakness in the financials.
The S&P/ASX200 index is 4 points lower at 4,918 and on the futures market the SPI 200’s down 5 points.
In economic news: The ABS reports that retail sales rose 1.4% in November following a 0.3% increase in October. Experts had expected only a 0.3% rise.
In company news: Iron ore miner Atlas Iron Ltd (ASX:AGO) requested a trading halt this morning before releasing a statement in response to a media article speculating on the sale of one or more of its assets. In relation to its Wodgina DSO Project Atlas says it has received strong interest from steel mills seeking to acquire off take to this iron ore, but says the discussions while advanced are not complete. Atlas also added that in relation to engaging the development partner for its Ridley Magnetite Deposit, the company has received strong interest from capable organisations, saying that discussions while advanced are not complete. Atlas Iron shares gained 4.69 per cent to $2.23.
And according to Reuters BHP Billiton Ltd (ASX:BHP) has asked Japan’s Pan Pacific Copper Company to accept around a 3% increase in copper ore prices for the 2010-2011 period. Reuters reports that the negotiations concern about 50% of copper ore that Pan Pacific will buy from BHP’s Escondida copper mine in Chile during 2010 and 2011. Shares in BHP rose 0.62 per cent to $44.09.
Turning now to market indices: The best performing sector at midday is the Materials index up 130 points at 13,277. Shares in Kagara advanced 7.66% to $1.195 the company yesterday announcing that the first iron ore had been mined from its Lounge Lizard project. Shares in White Energy and Fortescue Metals Group are also higher.
The worst performing sector at midday is the Telco Services index, down 14 to 1,148. Shares in Singtel fell 1.64% to $2.40. While shares in Telstra and Telecom of New Zealand are also lower at noon.
Looking to New Zealand and the NZSX50 is 12 points higher. Turning to the top 5 stocks by turnover: Telecom of New Zealand is top of the list with stock down 1.56% at $2.53 followed by; Fisher & Paykel Appliances, Michael Hill International, Westpac and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,135.90 an ounce and the Aussie dollar is trading at 92.40 US cents.
