The Australian share market is slightly higher at midday investors treading cautiously as they assess the impact of the US Federal Reserve’s surprise rise in its discount rate. NAB announced its Q1 earnings result that came in below its peers causing some softness in the financials.
And RBA Governor Glenn Stevens says the local economy is in a good position to prosper due to its close proximity to Asia with GDP expected to grow in coming years.
Mr Stevens also says further adjustments to monetary policy will need to be made to ensure that inflation remains within the RBA’s target of two to three per cent.
The S&P/ASX200 index is up 14 points at 4,669 and on the futures market the SPI200’s up 18 points.
In company news: Coal miner Centennial Coal Company Ltd (ASX:CEY) says first half profit fell 27% to $31.1 million compared to $42.7 million for the first half of fiscal 2009. Revenue dropped 13% to $381.9 million compared to $439.2 million last year. The company says it continues to receive strong demand for its thermal coal product saying it is targeting 2.6 million to 2.7 million tonnes of exports in the second half, up 2.2 million tonnes on the first half. CEO Bob Cameron says with its Airly mine commencing exports and Mandalong ramping-up its exports presence, shareholders can look forward to an increased profit in the second half. Centennial declared an interim dividend of 4 cents a share. Shares in Centennial Coal Company rose 1.58% to $3.85.
Property company Duet Group Ltd (ASX:DUE) has returned to profit in the first half of fiscal 2010 posting a profit of $80.7 million compared to a loss of $146.6 million for the same period a year ago. Revenue however dropped 1% to $581 million for the six months to December 31, 2009. The company says the result was driven by another strong contribution from its Dampier Bunbury Pipeline and increased tariffs. Duet Group declared an interim dividend of 10 cents a share. Shares in Duet Group added 0.85% to $1.78.
Turning now to market indices: The best performing sector at midday is the Consumer Staples index, up 79 points at 7,588. Shares in Coca-Cola Amatil gained 1.82% to $11.20. Shares in Woolworths are higher while shares in Goodman Fielder are flat.
The worst performing sector at midday is the Industrials index, down 2 points to 3,907. Shares in Seek declined 2.84% to $7.19. While shares in Mermaid Marine and Ausenco are also lower at noon.
Looking to New Zealand and the NZSX50 is 8 points lower. Taking a look at the top 4 stocks by turnover: Fletcher Building is head of the list with stock down 0.75% at $7.94 followed by; Telecom of New Zealand, Sky City Entertainment Group and Guinness Peat.
To gold and the dollar: Gold is trading at US$1,105.90 an ounce and the Aussie dollar is trading at 89.3 US cents.
Aussie stocks flat at midday. Centennial Coal Company Ltd (ASX:CEY) says first half profit fell 27% to $31.1 million compared to $42.7 million for the first half of fiscal 2009.
