Following a positive lead from Wall St overnight, the local share market is trading higher at midday led by gains in the miners with signs of a sustainable global recovery enticing investors back into resource stocks.
The S&P/ASX200 index is 25 points higher at 4,630 and on the futures market the SPI200’s up 19 points.
In economic news: The Australian Industry Group/Commonwealth Bank Performance of Services Index fell 2.6 points to a read of 47.4 in January. The result falling below the 50 mark which separates expansion from contraction.
According to data released by the ABS, Australia had a trade deficit of $2.25 billion in December.
And the Housing Industry Association/RP Data report that sales of raw residential land in Australia rose 33% in the three months to September compared to a year ago.
In company news: Junior oil producer Roc Oil Company Ltd (ASX:ROC) has downgraded its proven and probable reserve at its Basker-Manta-Gummy project. The company says 2P reserves as at December 31, 2009 are likely to be 20% to 25% lower than previously estimated. The company says the downgrade will result in an impairment of Roc’s carrying value of its interest in the project. Roc Oil shares plunged 30.71% to $0.44.
Retirement village and aged car facility operator Aevum Ltd (ASX:AVE) has reported a profit of $2.6 million for the half year after posting a loss of $15 million for the same period the year before. Net operating cash flow rose 119% to come in at $14.9 million for the period. Managing Director Steve Mann says that while economic conditions are expected to continue to show recovery, which will positively impact the operating performance of the company, the investment outlook for retirement living is more uncertain. Aevum shares rose 0.75% to $1.345.
Turning now to market indices: The best performing sector at midday is the Materials index up 284 points at 12,181. Shares in Aditya Birla added 7.73% to $1.115. Shares in Medusa Mining and Equinox Minerals are also higher.
The worst performing sector at midday is the Financials index, down 26 to 4,587. Shares in Platinum Capital fell 2.76% to $1.585. While shares in Mortgage Choice and Stockland are also lower at noon.
Looking to New Zealand and the NZSX50 is 3 points lower. Taking a look at the top 5 stocks by turnover: At the top of the list is Telecom of New Zealand with stock down 0.43 % at $2.34 followed by; Fisher & Paykel Healthcare, Fletcher Building, Auckland Airport and Goodman Property Trust.
To gold and the dollar: Gold is trading at US$1,114.65 an ounce and the Aussie dollar is trading at 88.71 US cents.
