The local share market is higher at midday following a positive finish on Wall St at the end of last week, investors hunting for bargains among battered resource stocks despite weaker oil and metals prices.
The S&P/ASX200 index is 29 points higher at 4,543 and on the futures market the SPI200’s up 36 points.
In company news: Gold miner Avoca Resources Ltd (ASX:AVO) says it expects to post its first ever profit of $40.5 million for the first half of the 2010 financial year. The maiden profit, which represents a 140% increase in revenue over the same period in 2008, is a welcome result for the company after it reported a loss of $21 million last year. Avoca’s managing director Rohan Williams says the miner and its Higgensville operations are performing above expectations and is confident the company will continue to grow and become Australia’s premier mid-tier gold producer. Shares in Avoca Resources rose 5% to $1.68.
Nickel producer Western Areas NL (ASX:WSA) expects to post a profit of $10.7 million for the six months to December 31, 2009, following a loss of $12.3 million in the same period in 2008. The company says the result is due to increased nickel sales at a better average price, and infrastructure access fees received as part of the Lounge Lizard access agreement. Production during the period is expected to increase to 5,874 tonnes of concentrate. Shares in Western Areas gained 3.2% to $4.19.
Turning now to market indices: The best performing sector at midday is the Telco Services index, up 12 points at 1,165. Shares in iiNet added 2.36% to $2.17. Shares in Telstra and Telecom of New Zealand are also higher.
The worst performing sector at midday is the Utilities index, down 22 to 4,100. Shares in Transfield Services Infrastructure Fund fell 1% to $0.99. While shares in Duet Group and AGL Energy are also lower at noon.
Looking to New Zealand and the NZSX50 is 6 points lower.
Taking a look at the top 5 stocks by turnover: Top of the list is Telecom of New Zealand stock steady at $2.31 followed by; Fletcher Building, Westpac, Telstra, and Goodman Fielder.
To gold and the dollar: Gold is trading at US$1,068.25 an ounce and the Aussie dollar is trading at 86.82 US cents.
