The Australian share market is marginally higher at midday, with the resource stocks leading the gains on the back of higher commodity prices and a positive response to Rio Tinto’s full year results released today.
Reports of a surprisingly large fall in jobless claims in the US and news the European Union will support debt-laden Greece helped to lift market sentiment, however a lack of detail from the EU on exactly how they will help is making investors cautious.
The S&P/ASX200 index is 6 points higher at 4,561 and on the futures market the SPI200’s up 2 points. In company news: Electrical appliances retailer Clive Peeters Ltd (ASX:CPR) expects to report a breakeven profit for the first half of fiscal 2010, above expectations.
The company is also forecasting earnings before interest, tax, depreciation and amortisation of about $1.9 million, and earnings before interest and tax of $4.4 million.
However managing director Greg Smith says trading conditions for the second half remain challenging due to recent interest rate increases starting to impact consumer spending.
Shares in Clive Peeters Ltd gained 8.11% to $0.40.
Paladin Energy Ltd (ASX:PDN) has posted a loss of US$19 million for the first half of fiscal 2010, improving on the $475 million loss it recorded in the same period a year before.
The uranium miner’s revenue increased 51% to US$101.2 million, thanks to achieving record uranium oxide production for the December quarter.
Shares in Paladin Energy Ltd fell 4.97% to $3.44.
Turning now to market indices: The best performing sector at midday is the Materials index, up 162 points at 12,059. Shares in Lihir Gold rose 1.75% to $2.91. Shares in Dominion Mining and Adelaide Brighton are also higher.
The worst performing sector at midday is the Telco index, down 26 points to 1,075. Shares in Telstra fell 2.48% to $3.14. While shares in Telecom of New Zealand and Singapore Telecommunications are also lower at noon.
Looking to New Zealand and the NZSX50 is 11 points higher.
Taking a look at the top 4 stocks by turnover: Top of the list is Telecom of New Zealand, shares down 0.43% at $2.30 followed by: Goodman Fielder, Sky City Entertainment and Telstra.
To gold and the dollar: Gold is trading at US$1,090.35 an ounce and the Aussie dollar is trading at 88.87 US cents.
