The Australian share market is higher at midday with the major banks leading the gains as investors cheer better than expected first quarter earnings from Westpac.
With Wall St closed on Monday for Presidents Day, investors are likely to look to company earnings results as key drivers of the market today.
The S&P/ASX200 index is up 42 points at 4,588 and on the futures market the SPI200’s up 36 points.
In economic news: NAB’s monthly business survey showed that business confidence rose 7 index points in January to a read of 15. Business conditions, however, fell 7 points to a read of 3 for the month.
In company news: Property major Mirvac Group (ASX:MGR) has posted a profit for the first half of fiscal 2010 and raised its full year earnings forecast. Net profit for the six months to December 31, 2009 came to $47.16 million, after reporting a loss of $645.7 million for the same period last year. Managing Director Nick Collishaw says the results show that the company is well positioned to deliver its earnings guidance, which it has upgraded to 9.2 cents a share. Shares in Mirvac Group rose 1.75% to $1.45.
Engineering contractor Macmahon Holdings Ltd (ASX:MAH) says its first half earnings increased 52% to $21.5 million. Macmahon says it has seen a significant rebound in the tender pipeline over the last six months with more work currently being tendered by clients than before the onset of the global financial crisis. The company says it now expects its 2010 profit to be in the range of $36 to $40 million, up on its guidance in November for profit of $34 million. Shares in Macmahon Holdings gained 0.78% to $0.645.
Turning now to market indices: The best performing sector at midday is the Financials Excluding Real Estate Investment Trust index, up 97 points at 5,275. Shares in Westpac rose 4.64% to $24.38. Shares in ANZ and NAB are also higher.
The worst performing sector at midday is the Health Care index, down 96 points to 8,341. Shares in Primary Health Care fell 12.07% to $4.88. While shares in Healthscope and Aevum are also lower at noon.
Looking to New Zealand and the NZSX50 is 14 points higher. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list its stock up 0.43% at $2.33 followed by; Goodman Fielder, Sky City Entertainment, and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,102.75 an ounce and the Aussie dollar is trading at 88.83 US cents.
