The local share market is higher at midday, with the miners leading the gains after strong manufacturing data out of the US helped to boost confidence in the global economic recovery and lift the outlook for demand in oil and metals.
The S&P/ASX200 index is 63 points higher at 4,587 and on the futures market the SPI200’s up 47 points.
In economic news: NAB’s monthly business survey showed that business confidence fell to 8 points in December from 19 in November. However business conditions remained unchanged at 10 index points for the month.
In company news: According to a report in The Age newspaper, National Australia Bank Ltd (ASX:NAB) Great Western unit has acquired F&M Bank for around US$50 million in cash from Citizens Republic Bancorp. The report says F&M Bank is a small farm-based bank in Iowa in the US. The Age says the sale includes US$125 million in loans and a deposit book of US$410 million. NAB shares fell 0.46% to $25.98.
Consumer finance company FlexiGroup Ltd (ASX:FXL) has upgraded its full year earnings outlook. The company says it expects net profit after tax for fiscal 2010 to come in between $39 million and $41 million, up from previous guidance of between $37 million and $39 million. This follows a 30% growth in core business profitability for the first half of fiscal 2010 to $19 million. In addition to the profit upgrade, FlexiGroup says it has received a positive tax ruling in relation to its IPO in December 2006, with the ruling expected to add around $15 million to its fiscal 2010 profit. FlexiGroup shares gained 9.12% to $1.555.
Turning now to market indices: The best performing sector at midday is the Materials index up 397 points at 11,861. Shares in Macarthur Coal added 14.17% to $9.99. Shares in Perseus Mining and Medusa Mining are also higher.
The worst performing sector at midday is the Health Care index, down 67 to 8,182. Shares in Primary Health Care fell 2.72% to $5.36. While shares in Sonic Healthcare and Healthscope are also lower at noon.
Looking to New Zealand and the NZSX50 is 18 points higher. Taking a look at the top 5 stocks by turnover: Auckland Airport heads the list with stock up 3.46% at $1.97 followed by; Telecom of New Zealand, Sky City Entertainment Group, Kathmandu Holdings and Mainfreight.
To gold and the dollar: Gold is trading at US$1,104.40 an ounce and the Aussie dollar is trading at 89.16 US cents.
